1) which of the following is true of a sales contract under the ucc?
a.the courts cannot fill any gaps in the contracts.
b.the court needs to find if the parties intended a contract.
c.an intent to contract exists even in the parties were unable to reach an agreement.
d.all terms of contract need to be clear for the court to decide the case.
2) state x has a sunday closing law making it a crime to operate a retail business on
sundays. the laws legislative history reveals that it was enacted to promote respect for
the sabbath by all the people of the state, and thus to promote public decency and
morality. one sunday, judy smith slips on a puddle of spilled soft drink at joes
hamburger joint (which is operating in violation of the statute), and suffers an injury to
her spine. the soft drink would not have been spilled if the store had not been open on
sunday. judy sues joe in negligence. one part of her complaint relies on the doctrine of
negligence per se. under the doctrine of negligence per se:
a.judy will recover because the spilled drink posed a reasonably foreseeable risk of
harm, and joe failed to eliminate that risk.
b.judy will recover because joe violated the sunday closing law.
c.judy will not recover because she was not within the class of persons intended to be
protected by the statute.
d.judy will not recover because she did not suffer harm of a kind that the statute was
intended to protect against.
3) what is the term to describe a plaintiffs failure to exercise reasonable care for her
own safety?
a.premises liability
b.strict liability
c.contributory negligence
d.assumption of risk
4) a corporations decision to issue a dividend, and the size of that dividend, is made by
the:
a.shareholders.
b.board of directors.
c.officers of the corporation.
d.creditors of the corporation.
5) in case of resale of goods arising out of a breach of contract, if the seller sets aside
goods intended for the contract or completes the manufacture of such goods, he is:
a.not obligated to try to resell the goods to someone else.
b.obligated to try to resell the goods to someone else.
c.obligated to enter into future contracts with the buyer.
d.obliged to destroy the goods.
6) the power of executive order normally derives from a(n):
a.legislative delegation.
b.federal court.
c.injunction.
d.restatement.
7) bob is on the board of directors of both acme corporation and beta corporation. acme
recently acquired teen co., a retailer of teen girls clothing. beta corporation had
previously acquired limitless co., another retailer of teen girls clothing. except the teen
girls clothing business, acme and beta do not have any other competing businesses.
under the antitrust amendments of 1990:
a.bob must resign from the board of directors of both acme and beta corporations.
b.bob must resign from the board of directors of acme corporation.
c.bob need not resign from either board of directors if the teen girls clothing business
contributes minimally to either organizations sales.
d.bob need not resign until a competitor of limitless and teen co. successfully
challenges acmes acquisition.
8) the consumer financial protection bureau (cpfb) was created by the:
a.dodd-frank wall street reform and consumer protection act.
b.equal credit opportunity act.
c.fair debt collection practices act.
d.fair and accurate credit transactions act.
9) perfection by public filing of a financing statement in the appropriate public office
serves as a(n) _____ notice to the world.
a.express
b.implied
c.constructive
d.public
10) the central requirement for the primary benefit test is:
a.breach of contract.
b.fraud.
c.privity of contract.
d.breach of trust.
11) a partners ownership interest is called _____.
a.a partnership interest
b.a shareholder interest
c.a partnership liability
d.a charging order
12) if a stockholder sues a cpa for common law fraud based on false statements
contained in the financial statements audited by the cpa, which of the following, if
present, would be the cpas best defense?
a.the stockholder lacked privity to sue.
b.the false statements were immaterial.
c.the cpa did not financially benefit from the alleged fraud.
d.the client contributed to the negligence.
13) mike minor buys some real estate as investment. the contract obligates mike to
make monthly installment payments for 10 years. mike reaches the age of majority one
month after making the contract. after this, mike makes 25 monthly payments under the
contract, but then decides that he wants to rescind the deal. which of the following is
most true?
a.mike can disaffirm.
b.mike cannot disaffirm because contracts for the sale of land can only be disaffirmed
before the age of majority.
c.mike cannot disaffirm because contracts for the sale of land must be disaffirmed
within one year of the age of majority.
d.mike cannot disaffirm because he has already ratified the contract.
14) in which of the following cases can the remedy of rescission be invoked by the
affected party?
a.mistake of tort
b.mistake of contract
c.mistake of law
d.mistake of fact