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Having been called for jury selection, Lawrence discovered that the defendant in the
trial is the brother of his stockbroker. The lawyers may rightfully reject Lawrence on
the grounds that his relationship with the stockbroker may affect his ability to be an
unbiased juror.
_____ occurs when a party, in good faith, executes all promised terms and conditions
with the exception of minor details that do not affect the real intent of their agreement.
A. Complete performance
B. Satisfactory performance
C. Partial performance
D. Substantial performance
How is "failure of consideration" and "lack of consideration" related?
A. They are real defenses which can be used against holders in due course.
B. Failure of consideration is a real defense and lack of consideration is a personal
defense.
C. Failure of consideration is a personal defense and lack of consideration is a real
defense.
D. They are personal defenses which cannot be used against holders in due course.
Which of the following is true of equity of redemption?
A. It is the right to pay off the mortgage in full, including interest, and thus discharge
the debt in total.
B. It states that a default on one installment payment will make the entire balance due
immediately, giving the mortgagee the right to collect the full amount.
C. It is the mortgagee's right to apply to a court to have the property sold.
D. It is the right to receive each installment payment as it falls due.
A seal is usually indicated by the addition of the work seal or the letters "L.S." meaning
locus sigilli or:
A. the "local nature of the seal."
B. the "logical signal."
C. the "place of the seal."
D. the "local deliverance from the state government."
Soft Feet, Inc. manufactures shoes. Walk Style, Inc. is a retailer of shoes. Soft Feet
offers to sell Walk Style 1,000 pairs of shoes at $5 per pair with delivery to be made by
October 31. Walk Style accepts but the acceptance requires delivery to be made by
October 20. What is the legal status of Walk Style's October 20 delivery date?
A. It is does not comply with the elements of a contract.
B. It binds the offeror to accept the conditions about the delivery date.
C. It is effective only if the original offeror accepts.
D. It is invalid under the mirror image rule.
Contributory negligence:
A. allows the injured party to recover damages from the tortfeasor.
B. requires that courts assign damages according to the degree of fault of each party.
C. involves the voluntary exposure of the victim to a known risk.
D. completely prevents the injured party from recovering damages.
Requests for admissions:
A. are made to secure a statement from a party that a particular fact is true.
B. ask a party to undergo a physical or a mental examination.
C. are written questions that must be answered in writing under oath by the opposite
party.
D. ask a party to produce documents, records, accounts, photographs, or other tangible
evidence.
The primary job of the chief technology officer of the United States is to:
A. build an integrated technology policy especially designed to meet the needs of the
national government.
B. support scientific research, to stimulate the national economy, and to safeguard
national security.
C. conduct research into all aspects of human life and health and to apply that
understanding to cure illnesses, to alleviate disabilities, and to lengthen human life.
D. coordinateadvances in technology and engineering as they relate to the practical
jobs of improving the American economy.
Which of the following is true of "click" fraud?
A. The click-on process functions only in online contracts and not for online
advertisements.
B. Clicks are proven ways to gauge interest in the advertiser's service or product.
C. One problem that arises in this area is verifying the identity of the "clicker."
D. The click-on process functions only for online advertisements and not for online
contracts.
Under a ____, the mortgagor conveys his or her interest in the property to a
disinterested third party, known as a trustee.
A. security agreement
B. mortgage
C. deed of trust
D. subordination agreement
Post-appellate procedures:
A. involve taking a case that has been rejected or dismissed by a domestic court to an
international organization.
B. refer to a pledge to use arbitration, should the parties find themselves in
disagreement as to the enforcement rights under the original contract.
C. are processes by which agencies invite the organizations who will be affected by a
new rule to provide input about the writing of that rule.
D. specify that the parties to the agreement have promised to use an alternative dispute
resolution technique when a disagreement arises rather than litigating the issue.
The principle of repentance calls for an expression of remorse by:
A. the combatants.
B. only the defeated.
C. all nations.
D. the United Nations.
_____ occurs if the hospital has retained a physician that the governing body of the
hospital knew or should have known was incompetent.
A. Ostensible authority
B. Negligent credentialing
C. A staff privilege
D. Indifferent testimony
Trudy had been a constant companion of Gertrude. When Gertrude died, she left Trudy
$10,000 in her will. On what basis might other heirs best attempt to challenge the
$10,000 gift?
A. Undue influence
B. Unsound mind
C. Improper heir-ship
D. Improper execution
Tom and Megan die in a plane crash. After their marriage they had been jointly holding
property. What happens to their property?
A. Tom's heirs inherit the whole property.
B. The state escheats the property.
C. Megan's heirs inherit the whole property.
D. The property is distributed equally between the heirs.
Iris represents Drew, an eccentric billionaire who lives alone on a Pacific Island.
Although Drew passes away on May 1st, this fact is not revealed until June 1st. On May
15th, Iris enters into a contract with Peggy on behalf of Drew. What is the legal liability,
if any, of Iris to Peggy?
A. Iris is liable for a breach of actual warranty of authority.
B. Iris is liable for a breach of implied warranty of authority.
C. Peggy may enforce the contract since Drew's death was unknown, thus Iris has no
liability.
D. Peggy may enforce the contract against Iris since she represented a nonexistent
principal.
_____ involves any false statement communicated to others that questions the quality of
an item of property or that raises uncertainty as to who actually has legal ownership
rights to the property in question.
A. Invasion of privacy
B. Defamaation
C. False imprisonment
D. Disparagement
A protection that insures property that cannot be covered by specific insurance because
the property is constantly changing in either value or location is a(n):
A. floater policy.
B. collision insurance.
C. annuity.
D. coinsurance.
Hazel offers to sell her home to Mandisa for "about $100,000 plus closing costs."
Mandisa accepts Hazel's offer but a dispute arises concerning the precise dollar amount
of the purchase price. How will a court resolve this dispute?
A. The court will declare the purchase price and terms too indefinite to create a binding
contract.
B. The court will determine a reasonable price to be paid by Mandisa.
C. The court will appoint a licensed real estate appraiser to determine the price to be
paid by Mandisa.
D. The court will require Mandisa to pay the average of her price and Hazel's price.
Matrix Corporation's board of directors decide not to outsource U.S. jobs to China, even
though it would cut their labor costs by 50%, in order to preserve the interests of the
local community. Shareholders sued the directors for failing to maximize profits. Under
current U.S. law, the directors:
A. are immune from this suit.
B. are clearly liable.
C. are liable unless they put the interest of the shareholders above all other interests.
D. are liable unless granted immunity by a federal prosecutor.
A qualified opinion by an auditor that indicates that the financial statements are an
accurate reflection of the company's financial health apart from some minor deviation
from GAAP, not serious enough to warrant an adverse opinion is known as a(n):
A. "except for" opinion.
B. "unless" opinion.
C. "but for" opinion.
D. "indeterminate" opinion.
The Federal Mediation and Conciliation Service plays:
A. anarbitration role in judging whether a charge of an unfair labor practice has merit.
B. an arbitration role in trying to resolve a dispute between labor and management
before the date of the hearing that will be held on the alleged charges.
C. a mediation role in which it offers nonbinding suggestions for settling disputes
between labor and management.
D. a mediation role in which it settles disputes between labor and management by
forcing the parties to compromise.
Geoffrey is an agent of Smith's Meat Products Limited. While delivering products, the
company's van breaks down. What legal theory, if any, would allow Geoffrey to
contract a garage for the repair of the principal's van?
A. Express authority
B. Actual authority
C. Apparent authority
D. Incidental authority
_____ occurs when one party does not say something about certain facts that he or she
is under an obligation to reveal.
A. Passive fraud
B. Fraud inducement
C. Fraud in inception
D. Active Fraud
If a bank uses a substitute check it makes which of the following warranties?
A. It is not a legal equivalent of the original check.
B. It contains an accurate image of the front and back of the original check.
C. The drawer, indorser, or the depositary bank will be asked to pay a check that has
already been paid.
D. Original checks have to be presented to the drawee bank for payment.
Persons who agree to commit criminal acts for a promised consideration are involved in
what criminal law defines as a(n):
A. restrictive covenant.
B. inpari delicto.
C. usury.
D. conspiracy.
Mashevida and Mei-Ling own a house as tenants in common. When Mei-Ling dies her
share of the house passes to:
A. Mashevida.
B. whomever the probate court designates.
C. her heirs.
D. the state in which the house is located.
The _____ is played out every time a plaintiff and defendant place their case in the
hands of a judge or jury.
A. federal court system
B. uncertainty principle
C. abstract principle
D. word of law
After betting $4 million on the outcome of a professional baseball game, Jake wants to
make sure that he does not lose his money. He enters an agreement with a team's
starting pitcher. The pitcher agrees to throw "fat" home run balls to the other team's
batters in exchange for $75,000 from Jake. The pitcher gives up 10 home runs in the
first three innings and his team loses the game. Jake refuses to pay him the $75,000
they agreed upon in the contract. If the pitcher sues Jake for breach of contract, which
of the following is most likely to be the court's ruling?
A. The contract is divisible and will award the pitcher damages for the legal sections of
the agreement.
B. The parties are in pari delicto and will refuse to award the pitcher any damages.
C. The pitcher can be declared less guilty of premeditation and will be awarded the
damages.
D. The pitcher maintained his promise as per the contract and hence Jake will have to
award the consideration.
The maximum time period that is allowed for Chapter 13 debtors to complete the
payment plan is _____ years.
A. eight
B. ten
C. five
D. twelve
Patricia holds 150 shares of common stock in a large corporation. Patricia:
A. is guaranteed the rights to some of the profits of the corporation.
B. is most likely entitled to two votes for each share of stock she holds.
C. will not be included in the distribution of capital upon dissolution of the corporation.
D. risks whatever money she invested in the 150 shares of common stock.
Which of the following beneficiaries have no enforceable legal rights?
A. Donee beneficiary
B. Incidental beneficiary
C. Creditor beneficiary
D. Insurance benefiicary
The only exception to the rule that says that either the principal or the agent may
terminate an agency relationship at any time arises in the situation of:
A. an agency by estoppel.
B. an agency by mutual agreement.
C. an agency coupled with an interest.
D. a notice of reimbursement.
