All of the following may, in general, revoke a will by operation of law EXCEPT:
a. subsequent marriage.
b. subsequent divorce, as far as a provision in the will of one party for the benefit of the
other.
c. birth of a child.
d. None of the above.
The doctrine of respondeat superior is most often applied in situations involving:
a. torts of the agent.
b. negligence of the principal.
c. contracts negotiated by the agent.
d. crimes committed by the agent.
Mel has a neighborhood grocery store that he would like to sell. Casey is interested in
purchasing the business, but he is concerned because he knows that Mel has built up a
lot of goodwill over the years, and he wonders whether Mel might not just open another
store down the block and take all of the business from the old store with him. Casey
asks for and receives from Mel a clause in the sale agreement that Mel will not open
another grocery store within a 150-mile radius of the old store for a period of at least
ten years.
a. What is this agreement called?
b. Is the negotiated clause a valid one? Explain why or why not.
c. What guidelines would a court ordinarily use in determining whether to enforce such
a clause?
The National Cooperative Research Act provides that:
a. joint ventures in the research and development of new technology are to be judged
under the rule of reason test.
b. treble damages apply to all joint ventures formed in violation of the antitrust laws.
c. joint venture participants must under all circumstances report their intent to the
Justice Department.
d. joint ventures formed to divide markets and fix prices are not illegal.
The fraudulent marketing of one person’s goods as those of another is referred to as:
a. palming off goods.
b. trade secrets.
c. dilution.
d. a tying arrangement.
Auditors must report directly to:
a. the SEC.
b. the company’s audit committee.
c. the Public Company Accounting Oversight Board.
d. the company’s Chief Financial Officer or President.
The doctrine of __________ is the basis for an employer’s liability for an unauthorized
tort committed by his employee in the course of his employment.
a. indemnification
b. respondeat superior
c. apparent authority
d. direct liability
Which of the following is true of PSD areas under the Clean Air Act?
a. Only limited increase in air pollution is allowed.
b. New construction of a major stationary source requires a permit from the state.
c. To receive a permit, a new source must show it will use the best control technology
available.
d. All of the above.
The types of indispensable paper include:
a. chattel paper.
b. instruments.
c. documents.
d. All of the above.
Glenna has been charged with arson of a storage building. The prosecutor must prove
Glenna’s guilt:
a. by a preponderance of the evidence.
b. by the greater weight of the evidence.
c. beyond a reasonable doubt.
d. beyond shadow of a doubt.
A patent would be appropriate in all but which one of the following cases?
a. The discovery of a medical use for moon rocks.
b. The invention of a miniature portable generator.
c. The discovery of a method of making soap from sand.
d. The invention of a fingernail-sized radio.
Arthur is the payee of a negotiable promissory note on which Brian is the maker. Arthur
indorses the note in blank and delivers it to Clark, who then transfers it to David
without indorsement. David presents it to Brian for payment when it becomes due, but
Brian claims he signed the note based upon fraud in the inducement and refuses to pay.
a. Who is primarily liable on the instrument? Who is secondarily liable on the
instrument?
b. Who has warranty liability? Why? Explain.
c. From whom can David try to collect now that Brian refuses to pay?
Darla offers to pay Edward $6,000 for Edward’s car, provided that Darla receives that
much from her uncle’s estate, which is currently being probated. She expects to know
for sure how much she will receive within a week or so. Edward agrees.
a. This is an illusory contract, because Darla is not certain she will receive the money.
b. There is no consideration present in this example.
c. The consideration from Darla to Edward is the promise of $6,000 subject to a
condition.
d. None of these are correct.
The local supermarket has a large, glass front door which is well lighted and plainly
visible. Nelson, who is new in the neighborhood, mistook the glass for an open
doorway and walked into it. If he shattered the door and injured himself:
a. the store is strictly liable to Nelson.
b. the store is not liable to Nelson since the door was well lighted and plainly visible.
c. the Palsgraf case would not allow Nelson to recover.
d. the store has no duty to Nelson.
A warrant is required for a search by the police except where:
a. the police are in hot pursuit of a fugitive.
b. voluntary consent is given to the search.
c. evidence of a crime is in plain view of the police officer.
d. All of the above.
References to other agreements in negotiable instruments:
a. destroy negotiability unless the recital makes the instrument subject to, or governed
by, the terms of another agreement.
b. do not destroy negotiability in any circumstances.
c. do not destroy negotiability unless the recital makes the instrument subject to or
governed by the terms of another agreement.
d. None of the above.
A statutorily secured monopoly right that is issued to inventors or discoverers of useful
new devices or processes is known as a:
a. copyright.
b. patent.
c. service mark registration.
d. trade name registration.
Parties with secondary liability unconditionally promise to pay the instrument.
Economic duress, such as that found in the case of Berardi v. Meadowbrook Mall
Company, renders a contract void.
In general, an assignment includes an implied warranty that the assignor who receives
value will do nothing to defeat or impair the assignment once it is delivered.
The NHTSA has the authority to set motor vehicle safety standards that promote crash
prevention.
First Bank loaned $100,000 to Central Office Supply Store to purchase computers for
its inventory. Central signed a financing agreement, which First Bank duly filed in the
appropriate public office. Lynn came into Central’s store and purchased a computer that
was subject to the security interest held by First Bank. Assuming that Lynn is a buyer in
the ordinary course of business, whose interest in the computer has priority?
A counterclaim is a document filed by a defendant denying the allegations of the
complaint.
The Federal Organizational Corporate Sentencing Guidelines require corporations to
formulate and implement compliance programs to deter crimes by their employees.
Implementation of adequate compliance programs can lead to lesser penalties when
crimes do occur.
Some statutes permit the operating agreement of a limited liability company to deny
members the right to withdraw from the company.