Which of the following would NOT be a promise statutorily made enforceable without
consideration?
a. Hawkins, in good faith, changes the quantity of square yards of carpet ordered from
Grant Mills.
b. Jones promises to pay his cousin’s past-due cell phone bill.
c. Dodds signs and delivers a waiver of a claim arising out of a breach of contract by
Keys.
d. A signed, written offer by Marcum Jewelers to sell four dozen 18′ gold chains to the
Alpha Sorority for $480 within the next 30 days.
To determine “market share” requires knowledge of which of the following?
a. What other products are substitutable for the product.
b. Where the product is sold.
c. How much of the product is sold.
d. All of the above.
Which of the following is false with respect to a written agency agreement by an agent
to act as the principal’s exclusive agent for five years?
a. Such an agency is capable of being revoked.
b. If either party revokes the contract within five years, he will be liable for breach of
contract.
c. The agent has the power to renounce the agreement.
d. This is an agency coupled with an interest.
If the instrument is order paper, how can a person become a holder?
a. Transfer of its possession.
b. Its indorsement by the appropriate parties.
c. All of the above.
d. None of the above.
At common law, the risk of loss or damage to goods identified under a contract of sale
falls upon:
a. the buyer.
b. the seller.
c. the party who had title or ownership of the goods at the time of the loss or damage.
d. the designated party as determined by the court.
Elmer agreed to act as the conditional guarantor of collection on a debt of $50,000 that
Fred owed to Gloria. Fred paid Elmer a premium to serve as surety. If Fred defaults on
the debt, what are Gloria’s rights against Elmer?
On April 6, Ellen sends a check out to a magazine publisher and then discovers she has
already paid for the subscription. She calls her bank and orders that the bank not make
payment. That order will be good until:
a. April 13.
b. October 6.
c. April 20 only if confirmed in writing.
d. October 6 if confirmed in writing.
a. What are the three essentials of an offer?
b. How does one distinguish between an offer and an invitation seeking offers?
In which of the following situations does the seller have the right to cure?
a. Where the time for performance under the contract has not yet expired.
b. After the time for performance has expired if the seller had reasonable grounds for
believing the buyer would accept a nonconforming tender with or without monetary
adjustment.
c. Where the buyer has revoked acceptance.
d. Both (a) and (b).
Which of the following is correct regarding a two-for-one stock split?
a. The purpose of the split may be to decrease the value per share of the stock.
b. The purpose of the split is to make a distribution to the stockholders.
c. After the split, each stockholder will have greater ownership interest in the
corporation.
d. The value of each share of stock will increase as a result of the split.
Bob rented a lawn mower from Scott Rentals. The lawn mower wheel was loose when
Bob picked up the mower. When he began to use it, the wheel fell off, causing the
mower to tip over onto his foot. Under what theory can Bob hold Scott liable for his
injuries?
a. Breach of warranty of merchantability.
b. Strict liability in tort for a defective condition.
c. All of these are correct.
d. None of these are correct.
Pat and Sally started a charcoal fire for Sally’s backyard barbecue and left it uncovered.
Then Sally went into the kitchen to make hamburger patties. While Sally was inside,
Pat backed up to catch a football and hit the grill, knocking the coals onto his feet. In a
pure comparative negligence state, who is liable?
a. Sally is liable for ALL of Pat’s injuries.
b. Sally is liable for Pat’s injuries in proportion to the degree of fault or negligence
found against her.
c. Sally is not liable for any of Pat’s injuries.
d. Sally is liable for Pat’s injuries only if Pat was more negligent than Sally.
With a __________ the jury makes specific written findings on each factual issue, and
the judge then applies the law to these findings.
a. general verdict
b. special verdict
c. voir dire
d. quasi in rem
Special state statutes to accommodate the needs of closely held corporations:
a. are quite similar in content.
b. are optional and must be elected by eligible corporations.
c. do not address the limited liability of shareholders.
d. require the corporation to operate with a board of directors, but it may consist of only
one person.
In a notice – race state:
a. an unrecorded deed is invalid against any subsequent purchaser without notice of
who recorded first.
b. unrecorded deeds are invalid against any subsequent purchaser without notice.
c. an unrecorded deed is invalid against any deed recorded before it.
d. a recorded deed is invalid against a subsequent purchaser who records.
What are some of the remedies available for copyright infringement after registration?
a. Reasonable attorneys’ fees to the prevailing party and criminal penalties for willful
infringement.
b. The impoundment and destruction of infringing articles.
c. Actual damages.
d. All of the above.
Most lemon laws define a lemon as a car that:
a. was sold by a dealer who refuses to make reasonable attempts to correct the problem.
b. continues to have a defect that substantially impairs its use, value, or safety, even
after the manufacturer has made reasonable attempts to correct the problem.
c. has been unpopular and so is sold at a discounted price.
d. a manufacturer must destroy so that it cannot be sold to other unsuspecting
consumers.
The type of moral equality espoused by John Rawls is:
a. freedom to do what one wishes.
b. social and material equality.
c. freedom from government regulation.
d. equality of opportunity.
The main purpose of the Bill of Rights was to:
a. enumerate all of the rights of U.S. citizens.
b. list the powers of the federal government.
c. provide for restrictions on the power of the federal government.
d. provide limitations on the powers of individuals.
Anita, in violation of a specific agreement not to extend credit over $1,000 without the
other partners’ approval, extends credit of $2,000 to a friend. Anita will be held
personally liable to the partners for any unpaid debt since she violated the duty of
obedience.
Constructive notice of termination of an agency may not occur by mere publication in a
newspaper.
Silence can never be an acceptance.
Greg signs an employment contract with Marcial Co. If a court determines that the
covenant not to compete contained within the contract is illegal, the whole contract will
be held unenforceable.
Ad substantiation does not require advertisers to have a reasonable basis for their claims
at the time the claims were made.
What transactions are enforceable even though they are not supported by consideration?
An easement that is appurtenant usually passes to the new owner of the land.
When a decision is made by an administrative law judge, it is final; there is no recourse
for appeal.
Harry was told that he had to pay $50 for filing his claim in small claims court. He did.
If the fee is really $40, he cannot recover the $10 because it is a unilateral mistake of
fact.