1) the implied warranty of habitability requires landlords to maintain residential rental
property in a statutorily defined, reasonably safe and healthy condition.
2) in a copyright infringement case, the successful plaintiff may recover either the
damages sustained by the plaintiff or the profits realized by the defendant, but not both.
3) josh acquires beneficiary rights under a contract between sunny and james. any
modification to that contract which discharges josh of his rights under the contract will
not be enforceable by the court.
4) the duty of trust requires a professional to maintain confidentiality.
5) safeco corporation manufactures toys for distribution to retailers. in safecos hands,
the toys are consumer goods.
6) a & k inc. obtains a charging order against bob, a partner in foter and poter
partnership. such an act will cause the partnership to dissociate.
7) when determining whether a manufacturer was negligent in adopting a particular
design, courts frequently supplement the above factors with an analysis known as the
utilitarian test.
8) the sole proprietor has the right to deduct business losses on his individual tax return.
9) the sarbanes-oxley act of 2002 requires public companies to have board audit
committees comprising only independent directors.
10) when partners disagree concerning an action to be taken in the ordinary course of
business, the disagreement will be resolved only if all the partners agree.
11) which of the following is an accurate statement about exclusive dealing
agreements?
a.the qualitative substantiality test for gauging the legality of exclusive dealing
agreements has prompted much criticism.
b.exclusive dealing agreements are unlawful even when they have minimal effect on
competition or monopolization.
c.the preventive nature of the clayton act does not allow it to cover exclusive dealing
agreements.
d.historically, exclusive dealing agreements involving a not insubstantial amount of
commerce have been declared illegal.
12) under two of the subsections of section 17(a), an investor need prove only
negligence by the accountant.
13) as commonly occurs, a(n) _____ may be the sole general partner of a limited
partnership.
a.association
b.natural person
c.corporation
d.trust
14) nina hired sue to work as a janitor in ninas apartment building. sue was negligent in
that she left a crack in the marble staircase unrepaired, without putting up a warning
sign. seth slipped on the staircase and suffered severe injuries. who is liable for this
accident?
a.nina is liable for the accident under the doctrine of respondeat superior.
b.sue is liable for the accident since she did not perform her duty with reasonable care.
c.sue will be held liable for committing an intentional tort out of her scope of
employment.
d.nina will be directly liable for sues negligence.
15) the purpose of the _____ is to increase penalties for corporate wrongdoers, establish
rules designed to deter and prevent future wrongdoing, and encourage and enable
corporate executives to be ethical and socially responsible.
a.sarbanes-oxley act
b.davis-bacon act
c.goldwater-nichols act
d.certiorari act
16) acorn marina inc. sells and services boat motors. on april 1, 1989, acorn financed
the purchase of its entire inventory with gac finance company. gac required acorn to
execute a security agreement and financing statement covering the inventory and
proceeds of sale. on april 14, 1989, gac filed the financing statement pursuant to the ucc
secured transactions article. on april 27, 1989, acorn sold one of the motors to mike for
use in his charter business. mike, who had once worked for acorn, knew that acorn
regularly financed its inventory with gac. acorn has defaulted on its obligations to gac.
the motor purchased by mike is:
a.subject to the gac security interest because he should have considered the fact that gac
financed the inventory purchased by acorn.
b.subject to the gac security interest because he purchased the motor for commercial
use.
c.not subject to the gac security interest because he is regarded as a buyer in the
ordinary course of acorns business.
d.not subject to the gac security interest because gac failed to file the financing
statement until more than 10 days after april 1, 1989.
17) the confirmatory memorandum exception to the uccs statute of frauds provision:
a.requires that the memorandum be signed by the party to be bound.
b.requires that the memorandum be sent within ten days after the contract is made.
c.applies even though the memorandum does not satisfy the uccs writing requirement.
d.requires that both parties to the contract be merchants.
18) a _____ argument states that we should or should not do something merely because
one or more other people or firms do or do not do it.
a.bandwagon fallacy
b.circular reasoning
c.false cause
d.gamblers fallacy
19) nina lent her car, which she knew had bad brakes, to heidi. however, she did not
inform the latter about the defect. as heidi was driving down the highway, she met with
an accident due to the faulty brakes. in this case:
a.nina is not liable to heidi because she was never asked about the brakes.
b.nina is liable to heidi because she did not inform her of the defect.
c.heidi is liable to nina because she had damaged ninas car.
d.heidi is liable to nina because she gave no consideration in return for the car.
20) maple interiors, located in boston, contracted to sell and ship sofas to peach
furniture, located in atlanta. the contract stated that the goods were to be shipped “f.o.b.
boston, via xyz railroad”. maple delivered the sofas to xyz railroad. they were shipped
from boston but never seen again. both peach and maple had assumed that the other
party had the risk of loss, so neither had obtained insurance. who must bear this loss?
a.peach must bear the loss because the risk passed to it after the sofas were placed on
the loading dock at maple’s warehouse.
b.peach must bear the loss because the risk passed to it after the sofas were delivered to
xyz railroad.
c.maple must bear the loss because the goods were never tendered to peach.
d.maple must bear the loss because in any sale by a merchant, risk does not pass until
the actual delivery of the goods to the buyer.
21) a promoter:
a.may have liability on the contracts he negotiates on behalf of the prospective
corporation.
b.does not hold any liability to third parties on preincorporation contracts.
c.automatically becomes one of the initial directors of the corporation.
d.is not liable on a preincorporation contract after the corporations adoption of the
contract.
22) in which of the following transactions is the buyer most likely to be entitled to
specific performance of the contract?
a.a contract for purchasing a tanker of crude oil
b.a contract for purchasing 1,000 tons of wheat
c.a contract for purchasing 100,000 light bulbs
d.a contract for purchasing a picasso painting
23) a contract whose formation is induced by duress is an example of a contract that is:
a.void.
b.voidable.
c.unenforceable.
d.executory.
24) which of these is an essential element of a bailment?
a.the bailee has no responsibility for the bailed property.
b.there has to be a written agreement between the two parties.
c.the bailee is allowed to make changes to the bailed property.
d.the bailor owns personal property or holds the right to possess it.
25) a gift is given to the testators issue or descendants, with each surviving descendant
dividing the share that his or her parent would have taken if the parent had survived.
this is known as division _____.
a.per stirpes
b.per capita
c.inter vivos
d.causa mortis
26) what are courts and administrative agencies expected to do in case they encounter
ambiguously worded statutes while deciding a case?
a.keep the particular statute aside
b.fill in the details on a case-to-case basis
c.refer to a different statute
d.initiate a debate in the legislature
27) the insurable interest requirement with regard to property insurance:
a.may be waived by a writing signed by the insured and insurer.
b.may be satisfied by a person other than the legal owner of the property.
c.must be satisfied at the time the policy is issued.
d.must be satisfied by the insureds legal title to the property at the time of loss.