1) one of the elements that must be demonstrated before a challenged tying agreement
will be held to violate section 1 of the sherman act is that:
a.the seller commands 10 percent of market in the tied product category.
b.the tying product is available for purchase without the agreement.
c.the tying agreement involves two integrated components of a larger product.
d.the seller is the market leader in the tying product category.
2) under the product liability theory of recovery known as strict liability, which parties
may be held liable? (answer using the majority rule used in most states.)
a.the manufacturer only, engaged in the business of making that product.
b.any seller who is a nonmerchant.
c.the wholesaler only, engaged in the business of selling that product.
d.the buyer of the product.
3) when an auction is advertised as being _________, the seller is treated as having
made an offer to sell the goods to the highest bidder.
a.without intent
b.without reserve
c.without price
d.without offer
4) _____ is effectively a conditional sentence that suspends the usual imprisonment
and/or fine if the offender toes the line and meets other judicially imposed conditions
for the period specified by the court.
a.probation
b.retribution
c.prevention
d.rehabilitation
5) which of the following is true of contracts involving intoxicated parties?
a.the rules are similar to the ones for people with a mental incapacity.
b.courts are generally sympathetic to people involved in such contracts.
c.a person incapacitated by intoxication can disaffirm at any period of time.
d.in most such cases, people have escaped their contractual obligations.
6) _____ to land may be defined as any unauthorized or unprivileged intentional
intrusion upon anothers real property.
a.trespass
b.nuisance
c.conversion
d.battery
7) _____ refers to a two-party relationship in which one party is authorized to act on
behalf of, and under the control of, the other party.
a.bailment
b.agency
c.estoppel
d.abatement
8) a copyright comes into existence upon the:
a.creation and fixing of a protected work.
b.creation of an idea.
c.creation of a protected work.
d.creation of a message.
9) mactech corporation is a subsidiary of clickon corporation, which owns 90 percent
shares of mactech. the management of clickon is not happy with the way mactech is
being managed. they believe that mactech is losing out a huge chunk of potential
business to rivals due to mismanagement. as a solution, the board of directors of clickon
approves a merger between clickon and mactech and they send a copy of the merger
plan to mactechs shareholders. this form of merger is called a(n):
a.semi-merger.
b.short-form merger.
c.incomplete merger.
d.half-merger.
10) the environmental protection agency (epa) sets a “primary standard” for air
pollution. this standard is designed to protect against harm to:
a.human health.
b.animal health.
c.plant health.
d.climate health.
11) n-gate corporation (ngc) was defectively organized. as a result, not even a
corporation by estoppel was formed. an ngc truck driver negligently ran over a
pedestrian while delivering goods manufactured by ngc. the pedestrian now wants to
sue. who is liable in this situation?
a.the managers of ngc only.
b.the truck driver only.
c.the truck driver and the managers of ngc.
d.the truck driver, the managers of ngc, and all the purported shareholders of ngc.
12) which of the following would result in the termination of agency by act of the
parties?
a.the principal suffers a permanent loss of capacity.
b.a specified result has been accomplished.
c.the agent declares personal bankruptcy.
d.the agent loses capacity or dies.
13) which of the following characterizes the uniform transfers to minors act?
a.the custodian must be the transferor himself.
b.it defines a minor as anyone under the age of 21.
c.it only covers the transfer of real property to a minor.
d.it has been adopted in a few states.