The concept of infancy is a set of common law presumptions about the relation
between capacity and gender.
Answer:
Which of the following statements is TRUE about a minitrial?
A. In a minitrial, a six-member mock jury empaneled by the court hears a shortened
presentation of the case by the lawyers for each side, and renders an advisory verdict.
B. If a settlement is not reached in a minitrial, neutral third-party advisor will render a
nonbinding opinion regarding how the dispute is likely to be resolved if it goes to trial.
C. The minitrial is conducted under court guidance.
D. The minitrial differs from mediation in that the third party to whom the dispute is
submitted decides the outcome.
Answer:
A corporation will be dissolved upon the death or insolvency of a shareholder.
Answer:
Punitive damages are recoverable for breach of contract.
Answer:
Whenever possible, the courts interpret an offer as proposing a bilateral contract.
Answer:
A retailer of consumer goods who relies on attachment of a security interest to perfect
its security interest does not prevail over other creditors of the debtor-buyer.
Answer:
Insurance companies do not permit the insurer to seek voluntary settlements of liability
claims against the insured.
Answer:
An instrument can qualify as a negotiable instrument if includes a clause concerning an
authorization to confess judgment or to realize on or dispose of collateral.
Answer:
The FTC requires used car dealers to display a “Buyer’s Guide” on each car that tells
whether the car is covered by a warranty.
Answer:
If a person permits a neighbor to borrow a wheelbarrow free of charge, a bailment for
the benefit of the bailee has been created.
Answer:
When an agent commits a tort or crime while working for the principal, the agent is
personally liable for the consequences of his actions, unless he is acting at the direction
of the principal.
Answer:
Under the doctrine of strict liability, care and caution may mitigate liability.
Answer:
A party to an illegal contract who is fully aware of the contract’s illegality can fully
recover damages.
Answer:
A contract may be enforceable if promissory estoppel applies.
Answer:
Mila borrows $1,000 from Pedro to pay for school and gives Pedro a note for that
amount. Pedro wants Mila’s father to sign as an accommodation party. Mila’s father
signs below Mila’s signature on the fall of the note. Who has liability to Pedro?
A. Mila has primary liability as a maker.
B. Mila’s father has primary liability as an accommodation maker.
C. Mila and her father have the same contractual liability.
D. Mila has primary liability and her father has secondary liability.
Answer:
Which of the following is TRUE of partnership property?
A. The fact that property is used in the business makes it partnership property though it
does not show in the account books.
B. Payment by the partnership of taxes or insurance on property is conclusive evidence
that the property is owned by the partnership.
C. Any property acquired with partnership funds is partnership property though a
contrary intent is clearly shown.
D. It includes all property that originally was contributed to the partnership as well as
anything purchased then or later for the partnership.
Answer:
The courts will overturn the independent agency’s action when:
A. an agency’s rules are unwise, though it does not exceed its regulatory authority.
B. an agency’s rulemaking does not exceed its regulatory authority.
C. the agency decisions are arbitrary and capricious.
D. the court does not set out adequate guidelines for agency action.
Answer:
Seth was shopping at a local music store looking for a CD, when he suddenly
remembered that he had an appointment with his math professor. He pulled his calendar
out of his backpack only to discover that he was late for the appointment. Seth quickly
put the calendar back into his backpack and ran out of the store. As he made his exit
from the store, a security guard asked Seth to accompany him to an office at the back of
the store to which Seth consented. Once there, the guard accused Seth of shoplifting.
The guard quickly searched Seth and his backpack and found nothing. The guard
apologized to Seth and explained that the store had recently experienced an outbreak of
theft. The whole incident took less than five minutes. Under these circumstances:
A. Seth can sue the store for false imprisonment.
B. Seth can sue the store for false imprisonment, emotional distress, and battery.
C. The store has conditional privilege to stop persons it feels are shoplifting as long as
the owner acts in a reasonable manner and detains the suspect only for a reasonable
length of time.
D. The store has no conditional privileges to stop persons it feels are shoplifting, but it
is liable for punitive damages.
Answer:
Which of the following is an example of a community property?
A. Property acquired during the marriage through a spouse’s industry or efforts.
B. Property a spouse owned before marriage.
C. Property acquired by a spouse during marriage as a gift or by inheritance.
D. Property exchanged for separate property.
Answer:
Which of the following is one of the requirements for forming an express trust?
A. The settlor need not necessarily attain the age required by state law for the creation
of valid wills and contracts.
B. The trust cannot be created for a reason that is contrary to public policy.
C. The settler must name a trustee for the trust and a substitute trustee in the event the
named trustee refuses to act.
D. The beneficiaries cannot be members of a specific class, such as “my children.”
Answer:
The Electronic Funds Transfer Act (EFTA) now addresses many of the issues that arise
out of consumer use of EFT systems, while _____ of the Uniform Commercial Code
deal/s with the funds transfers that are outside the EFTA.
A. Article 4A
B. Regulation E
C. Articles 3 and 4A of the UCC
D. Article 3 and Regulation E
Answer:
The CPA firm of Knox & Knox has been subpoenaed to testify and produce its
correspondence and working papers in connection with a lawsuit brought against
Johnson, one of its clients. Regarding the firm’s attempt to avoid having to present such
evidence, which of the following is correct?
A. Federal law recognizes such a privilege if the accountant is certified.
B. The privilege of confidentiality is available regarding working papers since the
accountant is deemed to own them.
C. The privilege of confidentiality is as widely available as the attorney/client privilege.
D. In the absence of a specific statutory provision, the law does not recognize the
existence of the privileged communication rule between accountants and their clients.
Answer:
Which of the following is TRUE of the liability to creditors in the process of
continuation of partnership beyond an agreed-on-term?
A. Withdrawing partners are liable for new obligations though they have given a notice
of withdrawal.
B. New partners are liable for prior obligations only to extent of contribution unless
they agree to greater liability.
C. Continuing partners are the only people liable for prior obligations.
D. Withdrawing partners are liable for prior obligations even though they are released
by novation.
Answer:
Under the Equal Protection Clause:
A. the government must treat all cases alike.
B. states are prohibited from arbitrarily discriminating against persons.
C. states are prohibited from discriminating only on the basis of nationality.
D. the government can uphold restrictions on property.
The states are prohibited from arbitrarily discriminating against persons by the Equal
Protection Clause of the Fourteenth Amendment, which prohibits any state from
arbitrarily discriminating against persons. The Equal Protection Clause also holds that
the government must treat like cases alike.
Answer:
(p. 298; 299) Assignments of future wages are not effective because:
A. they involve personal relationships.
B. they are contrary to public policy.
C. they materially alter the duties of the promisor.
D. they involve personal rights.
Answer:
Which of the following statements is TRUE about recklessness?
A. It is less morally objectionable than negligence, but more than intentional
wrongdoing.
B. It is best defended with a plea of contributory negligence.
C. It is more morally objectionable than negligence but less than intentional
wrongdoing.
D. It is identical to intentional wrongdoing.
Answer:
A quitclaim deed:
A. guarantees that the grantor has good title to the real property.
B. affords the grantee the right to sue the grantor for defective title.
C. is used to cure technical defect in the chain of title to property.
D. warrants against all liens and easements.
Answer:
The major piece of legislation outlawing discrimination in employment prohibiting
discrimination on the basis of race, color, religion, sex, or national origin is the:
A. FLSA.
B. ERISA.
C. Age Discrimination in Employment Act.
D. Title VII of the Civil Rights Act of 1964.
Answer:
A corporate manager looking for ethical guidance that neither the law nor social norms
accounts for must rely on:
A. a strategy that will maximize profits.
B. his/her individual conscience.
C. the advice of other managers.
D. his/her system of delegation to subordinates.
Answer:
An oral contract which was required by contract law to be in writing is:
A. void.
B. voidable.
C. unenforceable.
D. valid.
Answer:
An accountant’s duty of care:
A. is limited to their actions during the audit.
B. extends beyond her/his actions during the audit itself.
C. has been greatly limited by the courts.
D. does not comply with GAAS and GAAP standards.
Answer:
Harry Hotdog is hired as an accountant by a large Indianapolis-based accounting firm.
The firm’s attorney drafts an employment contract which contains the following clause:
“Employee agrees that he will not engage in the practice of accounting in Indianapolis
for one year after termination of his employment with this firm.” Hotdog signs the
contract, works for six months, and then resigns and opens his own accounting firm in
Indianapolis. His former employer sues him for breach of contract, and is likely to:
A. lose, because contracts that restrict trade are not considered illegal in Indianapolis.
B. lose because the contract represented an unequal bargain.
C. win, because Harry’s act is a violation of the Blue laws.
D. win, because the restriction has reasonable geographic and time restrictions.
Answer:
Mike snatched Kathy’s purse off her shoulder while she was walking on the street. She,
with the help of few others on the street, caught him and produced him before court.
Which of the following torts could Kathy prove in a lawsuit against Mike?
A. Assault
B. Battery
C. Defamation
D. Disparagement
Answer:
To negotiate an instrument:
A. it must not be transferred involuntarily.
B. it must be transferred voluntarily.
C. it must be transferred by a person other than the issuer.
D. it must be transferred by the issuer.
Answer:
If a bank pays a check that bears a forged signature of the drawer, the transaction will
be treated as one in which:
A. the bank paid out of the depositor’s funds under Article 3 of the Uniform
Commercial Code.
B. the bank paid out of its own funds under Article 3 of the Uniform Commercial Code.
C. the bank paid out of its own funds under Article 4 of the Uniform Commercial Code.
D. the bank paid out of the depositor’s funds under Article 4 of the Uniform
Commercial Code.
Answer:
Metz and Desman contracted for Metz to build a house for Desman on Desman’s lot
according to specifications provided by Desman. The contract provided that Metz
would be paid $125,000 for this. Metz unintentionally deviated from the specifications
in several minor respects. The house is soundly constructed and Metz completed the
work within the promised time. Desman refused to pay Metz any of the $125,000,
arguing that the house did not conform to the specifications. In this case:
A. Desman can get a decree of specific performance.
B. Metz has no right to be paid for any of his work because he breached the contract.
C. if the court finds that Metz has substantially performed, he will be able to recover the
contract price less any damages caused by his failure to perform as promised.
D. if the court finds that he substantially performed, Metz will be able to recover the
contract price less any damages caused to him because of the delay in payment.
Answer:
The term “amicus curiae” means:
A. “friendly cure” or the amicable resolution to a mediated dispute.
B. “friend of the court” or a third party allowed to file briefs.
C. ‘small courier” or the briefs, originally foot messengers, which are used to
communicate between lawyers and the courts.
D. the name for the conductor of an arbitration, a position originally filled by medieval
clergy.
Answer: