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1) which of the following would indicate a rejection under the mirror image rule?
a.inquiry regarding terms
b.material changes to offer
c.grumbling acceptance
d.present intent to accept
2) a(n) _____ is a contract under which an owner of property, the landlord, conveys to
the tenant the exclusive right to possess property for a period of time.
a.estate
b.assignment
c.tenancy
d.lease
3) under the 1933 act, which of the following is allowed to state the price at which the
securities will be offered?
a.a notice about a prospective offering published during the pre-filing period
b.a tombstone ad
c.a free-writing prospectus
d.a preliminary prospectus
4) anyone who discharges wastewater, other than just domestic sewage, to a publicly
owned treatment works (potw) must obtain what is known as a(n) _____ permit from
the local sewage treatment plant where the discharge is being sent or from the state.
a.industrial discharge
b.water pollution control system
c.national pollution discharge elimination system
d.national industrial discharge
5) in case a check is altered so skillfully that a bank is unable to detect the alteration,
which of the following stands true?
a.the bank should honor only those checks for which it receives a notice from the
drawer.
b.the bank is allowed to charge to the account the amount for which the check originally
was written.
c.the bank will be liable to recredit the drawers account for negligence.
d.the bank will hold the drawer responsible for contributing to the alteration of the
check.
6) _____ refers to the agreement between the debtors and the creditors wherein
creditors put pressure on debtors to reaffirm, or to agree to pay, debts that have been
discharged in bankruptcy.
a.reaffirmation agreement
b.miranda warning
c.blank endorsement
d.buy-sell agreement
7) n-ext corp. (nec) was defectively organized. as a result, even a corporation by
estoppel could not be formed. as representatives of nec, pete (a shareholder manager)
and dave (a nonshareholder manager) made a contract with a vendor for supplying raw
materials to nec. the vendor did not get paid as per the contract. who is liable in this
situation?
a.nec
b.dave and nec
c.pete, dave, and the management of nec
d.pete and nec
8) which of the following lets courts help parties determine their rights and duties even
though neither may yet have been harmed, so long as there is a real case or controversy
between them?
a.no liability outside privity of contract rule
b.ejusdem generis
c.a declaratory judgment statute
d.public law
9) in the context of overdue instruments, if a due date for the principal has been
accelerated:
a.the instrument is overdue when the court passes a judgment to that effect.
b.the instrument is overdue on the day after the grace period of seven days from the
accelerated due date.
c.the instrument is overdue on the day after the accelerated due date.
d.the instrument is overdue on the day of the due date.
10) in which of the following cases is the agent, but not the principal, liable?
a.an agent with no authority contracts for a disclosed principal.
b.an agent with actual authority contracts for an unidentified principal.
c.an agent with apparent authority contracts for an unidentified principal.
d.an agent with apparent authority contracts for a disclosed principal.
11) justin agrees to start a life-size portrait of julia beginning 2nd november. on the 28th
of october he writes to julia that due to unforeseeable circumstances he would not be
able to perform his promise, justin has used the doctrine of:
a.accord and satisfaction.
b.anticipatory repudiation.
c.specific performance.
d.quasi-contract.
12) in which of the following cases will perfection by attachment not be effective?
a.the goods were sold on conditional sales contract to the consumer.
b.the creditor has lent money to enable a consumer to buy goods.
c.the consumer good is a motor vehicle.
d.the goods were sold on a time-payment plan to the consumer.
13) leonard, ted, and julius are partners at jutle associates. they signed a two year lease
agreement with property company for business purposes. five months into the new
agreement, leonard dissociates from the partnership. under what circumstances will
leonard no longer be liable on the lease agreement?
a.leonard gives proper notice to property company of his intent to dissociate from jutle.
b.the three partners and property company enter into an appropriate novation
agreement.
c.leonard filed a statement of dissociation more than 90 days prior to leaving the
partnership.
d.property company will not serve to relieve leonard of liability under the lease
agreement.
14) contracts that are induced by misrepresentation are considered:
a.voidable.
b.enforceable.
c.material.
d.fraudulent.
15) which of the following accurately states the legal effect of the insureds violation of
an increase of hazard clause in a property insurance policy?
a.an increase of hazard clause provides that the insurers liability will be terminated if
the insured takes any action materially increasing the insurers risk.
b.the insurer acquires the right of subrogation.
c.the insurer cannot avoid having to pay the insured for a loss unless the loss resulted
from the condition that constituted a violation of the increase of hazard clause.
d.the insured becomes obligated to pay punitive damages to the insurer.
