Rose is working hard on Arlin’s mayoral campaign. She thinks that just a few more
votes could win the election, so she promises to pay her friend Violet $50 if she will
register and vote for Arlin. Violet does so, but Arlin loses the election, and Rose now
refuses to pay. This:
a. agreement is enforceable.
b. agreement is unenforceable and opposed to public policy.
c. is an agreement to obstruct the administration of justice.
d. is an unconscionable contract covered by the UCC.
Tim and Steve are roughhousing in Tim’s front yard when Steve intentionally pushes
Tim onto the neighbor’s property. In this case:
a. Tim is a trespasser.
b. Steve is a trespasser.
c. Tim and Steve are both trespassers.
d. None of the above.
Who administers the federal unemployment compensation laws?
a. The Social Security Administration.
b. The states.
c. The federal courts.
d. The NLRB.
Grandfather conveyed to Erin the right to the family farm after her grandmother dies.
This is called:
a. a possibility of a reverter.
b. a reversionary interest.
c. a vested remainder.
d. a contingent remainder.
Pam sells to Rob property which has a $50,000 mortgage in favor of First Bank. Rob
purchases the property subject to the mortgage. There is a default on the mortgage.
When First Bank forecloses, the value of the property has declined and it sells for only
$30,000.
Discuss which of the social theories listed below you most agree with and why. Discuss
your reasons for disagreeing with the others.
a. Distributive justice
b. Social egalitarianism
c. Libertarianism
Real defenses include all but which of the following?
a. Forgery of instrument.
b. Minority of the maker.
c. Fraudulent alteration.
d. Theft of a bearer instrument.
Like the federal government’s power to tax, its power to spend will be upheld so long as
it does not:
a. violate a specific constitutional limitation on federal power.
b. restrict the states’ constitutional limitations.
c. cause undue hardship to the states.
d. interfere with commercial trade.
Vladimir entered into a contract to buy Daniel’s collection of rare stamps. Vladimir
mailed payment of $10,000 for the stamps to Daniel, but now Daniel tells Vladimir, “I’ll
never part with these stamps.” Are the following remedies available to Vladimir?
a. Restitution: Yes; Specific Performance: Yes
b. Restitution: Yes; Specific Performance: No
c. Restitution: No; Specific Performance: Yes
d. Restitution: No; Specific Performance: No
The Contract Clause prevents a state from:
a. making contracts with private individuals.
b. affecting any agreements between two parties.
c. changing contracts after they have been made.
d. contracting with another state.
Jack, a landlord, sells his apartment house to Bob, who knows that each of the four
apartments is rented. May Bob tell the tenants to vacate and install his own tenants?
a. Yes, since he is now the owner.
b. Yes, the leases terminate when Jack’s ownership ends.
c. No, he must wait until their leases expire.
d. No, they may stay as long as they wish.
In the case of In the Matter of the Estate of Rowe, the court found:
a. the trustee should have followed the ‘Prudent Investor’ rule by using a balanced and
diversified approach to managing trust assets.
b. undue influence may justify a constructive trust.
c. the courts cannot engage in an analysis of a trustee’s actions in light of the history of
each individual investment.
d. a trustee cannot be found to have been imprudent for losses resulting from mere
negligence.
Doug takes a $500 check drawn by Gail to Gail’s drawee bank to cash it. Gail has over
$10,000 on deposit in her account, but her bank refuses to pay Doug. In this situation:
a. Doug can sue the bank and demand payment.
b. if the check is over 30 days old, the bank has a right to refuse payment.
c. the bank has incurred a liability to Gail for its improper refusal to pay the check.
d. All of the above.
Which of the following is true regarding identification of the goods under Article 2?
a. Only the buyer can identify the goods.
b. Identification of existing goods gives the buyer a special property right.
c. Identification of fungible goods occurs when the seller separates the contracted units
from the whole.
d. All of these are correct.
The concept of a combination that makes a publicly held corporation a private one and
includes cash-out contributions and management buyouts is a:
a. going private transaction.
b. procedure.
c. merger.
d. None of the above.
CERCLA is an act that:
a. regulates current and future generation, transportation, and disposal of hazardous
waste.
b. provides limited authority for the cleanup of inactive and abandoned hazardous waste
sites.
c. requires the federal government to establish a National Contingency Plan.
d. Both (a) and (b).
Most states have statutes protecting merchants from charges of false imprisonment
when detaining suspected shoplifters as long as the merchant detains the suspect:
a. without physical discomfort.
b. with probable cause, in a reasonable manner, and for not more than a reasonable
time.
c. for no more than thirty minutes.
d. in a way that will not cause embarrassment or physical injury to the suspect.
Mark is out sailing in his boat one evening when he hears a young girl crying for help
in the middle of the lake. Which of the following is true?
a. Mark MUST help the girl or he will be liable for negligence.
b. Mark must help the girl ONLY if he knows her.
c. Mark MUST help the girl if he is the girl’s uncle.
d. Mark MUST help the girl if he begins to rescue her and increases her danger.
A person named as a trust beneficiary:
a. may be almost anyone, unless the settlor’s object outrages public policy or morals.
b. may not sell or dispose of his interest during his lifetime.
c. can, by will in all cases, name who will become the next beneficiary.
d. will not be permitted to reject the trust.
Sue, Barb, and Carlotta agree to put in $1,000 each to set up a shelter for lost animals.
They each work two days a week. Donations fund the day-to-day operations. Do they
have a partnership?
a. Yes, since each has control of the operation.
b. Yes, because they are all co-equals in ownership of the shelter.
c. No, because they have made no formal agreement.
d. No, because there is no business for profit.
The refusal to pay or accept an instrument when it becomes due is known as:
a. the shelter rule.
b. dishonor.
c. being overdue.
d. subject to claim or defense.
What limits are imposed on administrative agencies by each of the following: (a) the
courts; (b) Congress; and (c) the executive branch?
Joanne rents a single-family house for one year starting September 1. If the house burns
down, the common law requires:
a. payment of rent only prior to the destruction.
b. payment to be suspended until the house is repaired.
c. payments to terminate.
d. payment to continue for the entire year.
Under the RMBCA, a newly formed corporation need not hold an organizational
meeting.
A security interest in electronic chattel paper is perfected by automatic perfection.
List and generally explain the warranties on presentment.
Lou fails to pay the property taxes on land mortgaged through Forest Bank. Forest’s
only recourse according to most courts is to foreclose on the property in order to protect
its rights.
Barbara put her old clothes in a box in the bedroom of her roommate. The roommate
now owns the clothes, because they are presumed to be a gift.
Under a shipment contract, title passes to the buyer at a time and place the seller
contracts with the carrier to ship the goods.
An offer can only be communicated by words; conduct cannot constitute an offer.
Debentures are the same as indentures.
“Order paper” is negotiated by delivery only.