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1) the total fairness test permits a shareholder to require the corporation to purchase his
shares at a fair price.
2) in general, the ulpa does not grant partners much power to expel other partners from
the partnership.
3) bill contracts to build a building for harvey. a few changes in the building code that
were made after the contract was signed will increase bills costs in performing his
duties. he is excused from performance under the contract.
4) under rupa, a new partner just joining a partnership has no liability for past debts of
the business.
5) a partner in a trading partnership ordinarily has implied authority to borrow money
for the partnership.
6) a security agreement may cover after-acquired property of the debtor.
7) when determining the presence of the intent to accept, a subjective standard is used.
8) proximate causation presupposes the existence of actual or but-for causation; you
cant have the former without the latter.
9) in order to prove actual malice in a defamation claim, the plaintiff must show that the
defendant had knowledge of the falsity of the statement.
10) to be relieved of obligations as surety, a compensated surety must show that:
a.he is secondarily liable for the payment of the debt.
b.a change in the contract was material and prejudicial to him.
c.he lacks the capacity to fulfill his promise.
d.he has provided adequate collateral to the creditor.
11) initially, section 8 of the clayton act prohibited any person from serving as a
director of two or more competing corporations (other than banks or common carriers)
if each corporation had capital, surplus, and undivided profits aggregating more than
_____.
a.$1 million
b.$5 million
c.$10 million
d.$20 million
12) to distinguish an offer, courts first look at:
a.the communication to the offeree.
b.the definiteness of terms.
c.the present intent to contract.
d.a description of the parties involved.
13) scarlett and mark want to lease an apartment from connor for a year. connor first
agrees, but on finding that they have two small children, refuses to lease them his
apartment. is connors refusal legal?
a.yes, he is the owner and has the right to refuse a lease.
b.yes, he has a valid reason for the refusal.
c.no, because scarlett and mark have promised to pay rent on time.
d.no, because this blatant discrimination is prohibited by the law.
14) a party may win a judgment even after the jury has reached a verdict against it
through the procedure of:
a.mensrea.
b.non obstante veredicto.
c.demurrer.
d.habeas corpus.
15) the 1970 clean air act required the epa to regulate the emission of toxic air
pollutants. which of the following toxic air pollutants did the epa set standards for under
this authority?
a.toluene
b.phenol
c.asbestos
d.selenium
16) the code determines negotiability at _____, so that indorsements do not affect the
underlying negotiability of the instrument.
a.precompliance
b.abeyance
c.issuance
d.disaffirmance
17) what was the original reason for granting congress the power to regulate interstate
commerce after the revolution?
a.to generate federal revenue
b.to establish federal supremacy
c.to block protectionist restrictions on trade
d.to enable a transition to a unitary system
18) the main difference between concealment and nondisclosure is that:
a.concealment is always regarded as an assertion of fact, while nondisclosure may or
may not amount to such an assertion.
b.a tort suit is possible in a concealment case, but not in a nondisclosure case.
c.punitive damages are available in a nondisclosure case, but not a concealment case.
d.nondisclosure is always regarded as an assertion of fact, while concealment may or
may not be an assertion of fact.
19) when taxes assessed on real property are not paid when due, they become a(n)
_____ on the land.
a.easement
b.lease
c.loan
d.lien
20) april roberts ordered hundred 19-inch color television sets from carl soans and
requested for a prompt shipment of the goods. carl promptly shipped fifty 21-inch color
television sets and fifty 19-inch color television sets without informing april that the
shipment of nonconforming television sets was an accommodation. which of the
following is true?
a.there is no acceptance because carls shipment materially differed from the terms of
the offer.
b.there is an acceptance and april is bound to pay the reasonable value of the fifty
21-inch television sets she did not ask for.
c.there is an acceptance but carl has breached the contract by shipping nonconforming
television sets.
d.there is a new offer that carl has made by sending the nonconforming goods which
april can accept or reject.
21) under the _____ system, the subcontractors or materialmen have direct liens and are
entitled to liens for the value of labor and materials furnished, irrespective of the
amount due from the owner to the contractor.
a.strict foreclosure
b.new york
c.conditional foreclosure
d.pennsylvania
22) in order for a party to successfully bring a lawsuit in federal court challenging a
federal administrative agency decision, that party must first:
a.sue in state court, and only then in federal court.
b.exhaust all necessary administrative remedies.
c.obtain a writ of certiorari.
d.submit the challenge to the inspector generals office for review.
23) cathy young, age 16, buys a 1973 chevy camaro from mark watson, age 23, for
$400. cathys indulgent parents, who give her everything she wants, loaned her the
money for the car. the reason for cathys purchase is that all her friends have cars and
she feels left out without one. one week after buying the car, however, cathy changes
her mind and tells mark that she wants to disaffirm the contract. when mark comes to
pick up the car and give cathy her money, though, cathy changes her mind again, telling
mark, ill stick by the deal. however, when cathys parents gave her a new car for her
17th birthday, she finally decides to disaffirm once again. which of the following is
correct?
a.cathy cannot disaffirm because the car is a necessary.
b.cathy cannot disaffirm because she ratified the contract by saying ill stick by the deal.
c.cathy cannot disaffirm because there is a sale of goods and article 2 of the ucc says
that 16 is the age of contractual capacity.
d.cathy can still disaffirm.
