Which of the following is generally NOT a defense to a claim against a manufacturer
under 402A?
a. Contributory negligence on the part of the plaintiff
b. Express assumption of the risk
c. Misuse or abuse of the product
d. Subsequent alteration of the product by the plaintiff
A civil lawsuit commences when the plaintiff files with the clerk of the trial court a
complaint against the defendant.
a. True
b. False
The majority of states follow the rule in awarding damages for fraud.
a. benefit-of-the-bargain
b. out-of-pocket
c. liquidated
d. restitution
Under the Americans with Disabilities Act (ADA), an employer may not use
qualification standards, tests, or selection criteria that screen out disabled workers.
a. True
b. False
Which of the following is true with regard to contractual relations between the principal
and a third party?
a. There is no liability on the part of the principal if the agent acts with implied
authority.
b. An undisclosed principal and the third party are contractually bound if the agent acts
within her actual authority, unless the contract specifies otherwise.
c. Under the Second Restatement, no principal is bound if the agent acts without any
authority.
d. A partially disclosed principal is bound only if the agent acts within the scope of
actual authority.
If private entities engage in public functions, constitutional guarantees such as free
speech and due process may apply to their actions under the doctrine.
a. state action
b. federal preemption
c. interstate commerce
d. supremacy
Forrest has a contract with Denzel to construct a new condominium complex. The
contract provides that Forrest must furnish a certificate of occupancy and conformity
with the local fire code before Denzel has an obligation to pay. The furnishing of the
certificate is an implied in fact condition subsequent to the construction of the building.
a. True
b. False
The Fair Debt Collection Practices Act defines the following practices as abusive,
EXCEPT:
a. a non-lawyer bill collector representing himself as a lawyer.
b. a creditor, using his own name, telephoning the debtor at 7 a.m.
c. a debt collector telephoning the debtor at inconvenient hours.
d. using obscene language.
RICO does not apply to businesses that are engaged in organized crime.
a. True
b. False
According to Adam Smith, the capitalistic system is composed of economic motivation,
private productive property, free enterprise, free markets, competition, and limited
government.
a. True
b. False
Alice is browsing in a commercial art gallery when she sees a painting that she likes.
Roger, who is the manager of the gallery, tells her that the painting is a genuine Leroy
Neiman work. Based upon that representation, Alice buys the work for $5,000. She later
discovers that the painting is only a cheap copy of the original that is worth no more
than $50. Roger has breached:
a. an express warranty to Alice that the painting is a Neiman work.
b. the warranty of merchantability.
c. no express warranties, because his statement was merely an opinion.
d. an express warranty, the warranty of merchantability, and the warranty of fitness for a
particular purpose.
To which of the following does a property owner owe the highest duty of care?
a. A stranded motorist who comes onto the property to seek help
b. A social guest and close friend who have come to the house for a party
c. A client who has come to an accountant’s office in a building which the accountant
owns
d. A neighbor who comes over uninvited to use a backyard lounge chair
Consumer electronic funds transfers are covered by Article 4A of the UCC, and
nonconsumer electronic transfers are covered by the federal Electronic Fund Transfer
Act.
a. True
b. False
The holder of legal title to the property in a trust is the:
a. grantor.
b. settlor.
c. beneficiary.
d. trustee.
Quasi contract is another name for a contract that is implied in fact.
a. True
b. False
In dealing with unconscionability:
a. most cases have involved low-income consumers.
b. courts have demonstrated an unwillingness to limit freedom of contract.
c. courts have applied the doctrine to the negotiation process, which involves
substantive unconscionability.
d. courts have not considered inequality in the bargaining positions of the parties.
In determining whether a contract containing both a sale of goods and a service is a
UCC or general contract, the majority of states follow the:
a. CISG.
b. predominant purpose test.
c. parol evidence test.
d. procedural or bargaining scrutiny.
To be effective, a deed need not be conveyed for consideration.
a. True
b. False
A traffic offense, such as a speeding ticket, would be heard by a:
a. U.S. District Court.
b. state inferior trial court.
c. state probate court.
d. U.S. Court of Federal Claims.
A drawee bank’s refusal to certify a check constitutes a dishonor of the instrument.
a. True
b. False
Compensatory damages are intended to protect the injured party’s expectation interest.
a. True
b. False
Robert and John entered into a bilateral contract. If they agree to a rescission of the
contract while it is executory, there is a lack of consideration for the rescission.
a. True
b. False
The surety, as defense to payment, may assert a principal debtor’s defense of minority.
a. True
b. False
From a Kantian perspective, for an action to be moral, it must be possible for it to be
made into a universal law and it must respect the autonomy and rationality of all human
beings.
a. True
b. False
Max buys shares of newly issued Z Corp. stock for $10 per share and pays $1,000 cash,
a car worth $2,000, and a promissory note for $5,000. Under traditional corporate law,
followed in about half of the states, how many shares of stock could Max validly buy?
a. 100
b. 300
c. 800
d. 600
Invasion of privacy is in reality a collection of four distinct torts.
a. True
b. False
The purpose of Federal Contract Compliance Programs is to require affirmative steps to
provide opportunities for handicapped people in federal programs.
a. True
b. False
What happens if the police illegally seize evidence in violation of the Fourth
Amendment?
a. The evidence will be excluded from use at trial.
b. The defendant’s arrest is nullified.
c. The defendant is entitled to another trial.
d. The defendant will be paid for the expenses of his defense.
Misuse or abuse of the product is a defense to an action brought under 402A of the
Restatement.
a. True
b. False
A payee may be a holder in due course under the Code.
a. True
b. False
Z, a seller in Miami, enters into a contract which states that goods are to be delivered to
X, a buyer, in New York.
Title is to remain with Z until delivery to X. This is:
a. a shipment contract.
b. an FOB Miami contract.
c. a destination contract.
d. a contract voidable by the buyer until delivery.
The Revised Act and the majority of states hold that the officers’ and directors’ test of
the duty of diligence requires a director or officer to discharge her duties:
a. in good faith.
b. with the care an ordinarily prudent person in a like position would exercise under
similar circumstances.
c. in a manner she reasonably believes to be in the best interests of the corporation.
d. All of these.
Computer crimes are so commonplace that an estimated two out of every three copies
of software are illegally obtained.
a. True
b. False
An agency can charge for providing records to a person requesting access to its files.
a. True
b. False
Terry and Ernest agree to become partners in advertising and promoting the Midway
Fair to be held three years hence. If they agree orally, will the partnership agreement be
enforceable?
a. Yes, since no writing is required
b. Yes, as long as a division of profits is achieved
c. No, because the venture cannot be performed within one year
d. No, due to arguments about terms