To avoid litigation over impossibility and impracticability issues, modern contracting
parties often contract around the doctrine of impossibility, specifying the failures that
will excuse performance in their contracts. The clauses in which they do this are called
__________ clauses, and they are generally enforced by courts as written.
a. delta force
b. force majeure
c. magnum force
d. force corporeal
A third person should recognize that a partner has limited or no authority if:
a. the partner seeks to act for the partnership concerning a matter not within the usual
business of the firm.
b. the third person knows that the partnership has been terminated.
c. the partner seeks to pay a personal obligation by issuing a promissory note in the
name of the firm.
d. all of the above.
The statute of limitations in a tort action for malpractice runs from:
a. the date when the harm occurs.
b. the date when the harm is discovered.
c. the date when the plaintiff determines the total amount of damages caused by the
harm.
d. either the date when the harm occurs or when it is discovered, depending on the type
of damages sustained.
The status of a trustee in a bankruptcy proceeding is best described as the:
a. prosecutor of the debtor.
b. successor to the debtor.
c. defender of the debtor.
d. protector of the debtor.
An offer to perform is known as a(n) __________.
a. rendering
b. offering
c. tinder
d. tender
When an insurance policy is ambiguous, the policy is interpreted:
a. against the insurer.
b. in favor of the insurer.
c. according to the dictionary meaning of the words.
d. according to the meaning of the words in the insurance industry.
When one party has broken a contract, there are several remedies available to the
non-breaching party, including:
a. bringing an action for money damages.
b. rescinding the contract.
c. seeking specific performance.
d. all of the above.
In applying the “front-page-of-the-newspaper” test to a contemplated course of conduct
one should ask:
a. Would I be found criminally liable if this winds up on the front page of the
newspaper?
b. Would I be liable for monetary damages if this winds up on the front page of the
newspaper?
c. Would I be willing to have my spouse, friends, and children read about this if it winds
up on the front page of the newspaper?
d. Would I be able to explain this to the authorities if it winds up on the front page of
the newspaper?
If an express warranty is breached:
a. the warrantor is not liable if due care was exercised in the manufacture or handling of
the product
b. the seller has no warranty obligation if the buyer had the opportunity to inspect the
goods before purchasing them.
c. the warrantor is not liable if (s)he honestly believed that the warranty was true.
d. the warrantor is always liable.
In a cash sale that does not require the physical moving of the goods, the:
a. parties are required to perform concurrently.
b. seller is required to tender the goods before the buyer must pay for them.
c. buyer must pay for the goods in advance.
d. buyer must actually receive the goods before he or she is required to pay for them.
Defamation of a public figure requires what additional element?
a. Intent
b. Malice
c. Causation
d. none of the above
The process of incorporation involves the expenditure of funds for organizational
expenses.
Commercial General Liability (CGL) policies apply to product liability cases, actions
for wrongful termination of employees, sexual harassment cases, damages caused by
business advertising or employee dishonesty, and trademark infringement suits.
In an administrative hearing, an administrative law judge hears the complaint and has
the authority to swear witnesses, take testimony, make evidentiary rulings, and make a
decision to recommend to the administrative agency heads for action.
Directors are usually allowed to vote by proxy.
A bill of lading will be negotiable if its terms are that the goods are to be delivered to
“bearer” or to “the order of” a named person.