Dale defaults on a car loan secured by his car and guaranteed by both Sam and Dave.
Subrogation would allow
Sam, who paid Dale’s full obligation, to:
a. repossess the car.
b. collect from Dave.
c. collect from Dale.
d. All of these.
Lynn, a tailor, agrees to sew a pair of drapes for Zach’s living room. Zach promises to
pay Lynn $300. Lynn completes the drapes using material selected by Zach, but Zach is
not satisfied and refuses to pay for them. In this case:
a. whether Zach will have to pay for the drapes depends upon whether as a reasonable
man he ought to be satisfied.
b. the standard applied here is a subjective standard of satisfaction.
c. the doctrine of frustration of purpose applies.
d. the condition of satisfaction is an express condition.
ABC Partnership agrees to hire an “errand runner” 20 hours per week for the summer.
Alan, a partner, interviews a college student and decides to offer her the job. But she
says she needs a 40-hour-a-week job, so Alan agrees to make it 40 hours. What result?
a. ABC Partnership is not bound to hire her.
b. ABC Partnership is bound to pay her for 40 hours per week.
c. Alan is bound to pay her for 20 hours per week.
d. Alan has to pay her for 40 hours per week.
Marilyn contracted with Bravo Builders to build an addition to her house for $15,000.
After digging the foundation, Bravo decides that it will take more work and more
concrete than it had originally thought and that it will need to charge an additional
$5,000 for the job. Assuming Marilyn agrees, which of the following is correct?
a. Marilyn will have to pay $20,000.
b. This is a contract under seal which is enforceable.
c. This is a modification of a preexisting contract, which under common law must be
supported by additional consideration on the part of Bravo Builders.
d. This is the settlement of a disputed debt that requires no additional consideration on
the part of BravoBuilders.
If Taylor conveys property “to Baines for life” and makes no disposition of the
remainder of the estate, Taylor holds
the reversion.
a. True
b. False
A contract agreeing to indemnify the insured against certain specified defects in title to
real property is called:
a. title insurance.
b. a warranty deed.
c. guarantee insurance.
d. a real estate guarantee.
A buyer of goods who buys without knowledge of a security interest, for value, and
primarily for personal, family, or household purposes takes the goods:
a. subject to any purchase money security interest automatically perfected.
b. subject to all security interests in the goods.
c. free of any purchase money security interest automatically perfected.
d. free of a security interest perfected by filing.
The EPA may not impose civil fines.
a. True
b. False
Under the Pregnancy Discrimination Act,
a. family leave must be given to pregnant women and mothers of newborns.
b. employers may not refuse to hire a pregnant woman, fire her, or force her to take
maternity leave.
c. employers must give family leave to fathers of newborns as well as to mothers.
d. the BFOQ defense is not available.
Defamation is a form of speech wholly outside the protection of the First Amendment.
a. True
b. False
Sovereign states and individuals may request and receive advisory opinions from the
International Court of Justice.
a. True
b. False
There can be apparent authority where a third party knows the agent has no actual
authority.
a. True
b. False
In the goods are sold and delivered to the buyer with an option to return them to the
seller.
a. a bailment
b. a sale on approval
c. a sale or return
d. entrusting to a merchant
A plumber hired to redo the plumbing in a building is an independent contractor and
agent of the owner of the building.
a. True
b. False
The owner of a dog will always be strictly liable if the dog bites someone.
a. True
b. False
Disaffirmance may be express, but it may not be implied.
a. True
b. False
Phil, a tax accountant, promises to do Marge’s individual federal, state, local, and gift
taxes for the year. He completes all but the gift taxes. Under the substantial
performance doctrine, Marge will:
a. not have to pay Phil.
b. not have to accept the work.
c. have to pay Phil for all but the gift taxes.
d. have to pay Phil the contract price.
UCC “Election of Remedies” rules would require the aggrieved party to choose one
remedy he wants to pursue and forego the others.
a. True
b. False
The general rule in negligence is that a person is under a duty to all others at all times to
exercise reasonable care for the safety of others.
a. True
b. False
The process whereby a court “rewrites” or “corrects” a written contract to make it
conform to the true intentions of the parties is:
a. injunction.
b. reformation.
c. specific performance.
d. rescission.
If Gil assigns his lease to Jim, Gil has no further obligations to his landlord.
a. True
b. False
Although in theory there is a distinction between a surety and a guarantor, in common
usage the two terms are almost synonymous.
a. True
b. False
The McCarran-Ferguson Act, enacted in 1945, left the regulation of insurance to the
states.
a. True
b. False
Specialized suretyships would include:
a. fidelity.
b. incorporate.
c. non-official.
d. legislative.
A court would be likely to enforce an illegal contract:
a. under certain circumstances in which the aggrieved party was unaware of the
illegality.
b. where, although the contract is unconscionable, there is only procedural
unconscionability.
c. where the agreement is with an unlicensed attorney.
d. under no circumstances.
The best and most reliable tool for preserving a partnership business after dissolution is
through a continuation agreement.
a. True
b. False
Enabling statutes may not impose more stringent procedural requirements for
promulgating legislative rules than those found in the APA.
a. True
b. False
Alexander Schwing indorses his check with his own name and the words “for deposit
only.” What type of indorsement is this?
a. A blank indorsement
b. A special indorsement
c. An unrestrictive indorsement
d. A blank, restrictive indorsement
The SEC has adopted rules requiring an issuer’s chief executive and chief financial
officers to certify the financial and other information contained in the issuer’s annual
and quarterly reports.
a. True
b. False
Shannon orally agrees to buy 500 telephone answering machines from Thomas for
$25,000. Thomas delivers 300 answering machines to Shannon, who receives and
accepts them. Which of the following is correct with regard to this transaction?
a. Shannon can enforce the contract for the additional 200 machines.
b. The contract is enforceable only to the extent of the 300 machines that have been
received and accepted.
c. The entire contract is in violation of the statute of frauds and cannot be enforced.
d. This is a bad deal and therefore unconscionable and unenforceable from the
beginning.
The Sarbanes-Oxley Act prohibits accounting firms from performing which of the
following services for audit clients?
a. Bookkeeping
b. Implementing financial information systems
c. Actuarial services
d. All of these
A commercial unit may be a set of articles, such as an assortment of sizes.
a. True
b. False