Upon rightful rejection or justifiable revocation of acceptance, the buyer loses all
property interest in the goods.
a. True
b. False
When the nonconformity or default substantially impairs the value of the installment
but not the value of the entire contract, the buyer can reject the installment, even if the
seller gives adequate assurance of the installment’s cure.
a. True
b. False
Privacy protection for employees is limited to remedies available in tort law.
a. True
b. False
What is “dumping”?
a. The disparaging of the products of a competitor in international trade.
b. A company’s selling of its product cheaper in its home market than in its export
market.
c. A company’s engaging in overproduction in order to flood a market so as to drive
down prices.
d. A company’s selling of its product for less than normal value in a foreign market.
Art signs a promissory note payable to the order of Swains Jewelers for $8,000 for a
wedding ring. If the owner of
Swains simply signs “Swains Jewelers”:
a. the note is restrictively indorsed.
b. the indorsement is ineffective because the note will have to bear the signature of the
person who indorsed it.
c. the note is negotiable by delivery.
d. the indorsement will be valid only if dated.
Although wagering is generally illegal, some states permit certain kinds of regulated
gambling, especially wagering conducted by governmental agencies.
a. True
b. False
Old-Age and Survivors Insurance is one of the programs under the Social Security
system.
a. True
b. False
Under the parol evidence rule, which of the following types of evidence may be used to
vary or contradict the written agreement?
a. Prior oral or written agreements
b. Contemporaneous oral or written agreements
c. Subsequent oral or written agreements modifying the original agreement
d. None of these.
Federal Flag Company sends in an American flag for registration under the Lanham
Act. The registration will be accepted.
a. True
b. False
The 2010 guidelines regarding horizontal mergers:
a. use a single methodology for merger analysis.
b. are intended to identify harmful mergers while avoiding unnecessary interference
with mergers that will not be likely to affect competition.
c. explain that market definition is a necessary starting point of merger analysis.
d. reject use of the Herfindahl-Hirschman Index in quantifying market concentration.
Extinction of a gift by a testator’s failure to change his will after changed circumstances
have made the performance
of a provision in the will impossible is termed:
a. renunciation.
b. ademption.
c. abatement.
d. escheat.
In the United States, treaties are not subject to judicial review.
a. True
b. False
A crime that is punishable by a fine or imprisonment in a local jail is a:
a. felony.
b. white-collar crime.
c. misdemeanor.
d. malaprohibitacrime only.
If Jack contributed $1,000 as a limited partner and signed a certificate of limited
partnership, but the certificate was filed in the wrong office:
a. Jack may avoid liability as a general partner if he withdraws from the business and
quickly renounces future profits.
b. Jack is not a partner at all and may withdraw his contribution.
c. Jack is a general partner for all purposes.
d. Jack may become a limited partner by quickly filing an affidavit stating he was not
responsible for the erroneous filing.
Zoning ordinance variances:
a. are usually available for hardships caused by the actions of the property owner
seeking the variance.
b. are available if it affirmatively appears that the property as zoned cannot yield a
reasonable return on the owner’s investment in the property.
c. are available for hardships caused by the variance that are common to the zoned area.
d. All of these.
A ‘sale,” as defined by the UCC, takes place when:
a. the price is paid.
b. there is a manifestation of mutual assent.
c. the parties shake hands or affirmatively agree.
d. the title is transferred to the buyer.
The Consumer Product Safety Commission:
a. only has the authority to educate the public concerning product safety problems.
b. uses data it gathers to set uniform product safety standards for goods such as toys and
lawn mowers.
c. can only make manufacturers voluntarily submit their products for testing if the
product falls below its
regulatorystandards.
d. has no enforcement powers since compliance with its regulations is left up to the
manufacturer.
In the majority of states, even non-voting shares may vote on fundamental changes that
affect that class of shares as a class.
a. True
b. False
A minority of states have adopted the common law lien theory of mortgages which
gives the mortgagor the right of ownership and possession.
a. True
b. False
In a Chapter 13 proceeding, the bankruptcy estate of an individual includes wages
earned aftercommencement of the proceeding.
a. True
b. False
A transaction whereby the tenant transfers away her entire interest under a lease is
called a(n):
a. sublease.
b. assignment.
c. eviction.
d. abandonment.
Sarah goes to Marlin’s Seafood Restaurant for dinner. The restaurant has a loose tile on
the floor near the entry, which is known to the owner, but not marked. Sarah trips and
falls and breaks her arm. Sarah’s status with regard to the store is that of:
a. licensee.
b. business visitor.
c. public invitee.
d. trespasser.
Brian makes a material misrepresentation of fact regarding his horse to Rosalind while
out riding one day. Later that day, Rosalind makes an offer to buy the horse. Brain
accepts without correcting his earlier misrepresentation of fact. In this case:
a. Brian may avoid the contract.
b. Rosalind may avoid the contract.
c. either or both Brian or Rosalind may avoid the contract.
d. neither Brian nor Rosalind may avoid the contract.
A valid contract is one that meets all of the requirements of a binding contract.
a. True
b. False
Another term for personal property is:
a. patent.
b. chattel.
c. realty.
d. fixtures.
The Code has expanded the rights of good faith purchasers with respect to sales by
minors.
a. True
b. False
The elements of embezzlement are included in larceny.
a. True
b. False
Lack of consideration is the basic distinction between a gift and a sale.
a. True
b. False
To be effective, notice of revocation of an offer:
a. must be communicated directly to the offeree before the offeree has accepted.
b. may be communicated indirectly to the offeree through a third person.
c. must be dispatched before the offeree accepts; when notice actually reaches the
offeree is not important.
d. is not addressed in the Restatement.
Which of the following statements about wills is correct?
a. A will must be written on one piece of paper.
b. Another writing may be incorporated by reference in a will.
c. The testator must sign his or her full name.
d. The testator cannot have any “help” in signing a will.
Under all LLC statutes, a unanimous vote of the members must be obtained to approve
a merger.
a. True
b. False
Corporations today outnumber unincorporated business associations.
a. True
b. False
Under Section 2-210 of the Code, unless circumstances indicate to the contrary, a
contract that prohibits an assignment:
a. prohibits both an assignment of rights and a delegation of duties under the contract.
b. prohibits only a delegation of the delegator’s duty of performance and not the
assignment of rights.
c. renders any subsequent assignment ineffective.
d. All of these.
The form of business association known as a partnership can be traced to ancient
Babylonia and classical Greece and was used in England during the Middle Ages.
a. True
b. False