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Which of the following was the result in Orville Arnold and Maxine Arnold v. United
Companies and Michael T. Searls, involving the issue of whether an arbitration
agreement entered into as part of a consumer loan transaction containing a substantial
waiver of the consumer's rights, including access to the courts, while preserving for all
practical purposes the lender's right to a judicial forum, is void as a matter of law?
A. The court upheld the agreement based upon principles of freedom of contract.
B. The court upheld the agreement as far as the plaintiffs' duty to arbitrate but stated
that the same obligation would be imposed on the defendants.
C. The court upheld the agreement so long as the parties agreed that plaintiffs would not
be required to pay the defendants' attorney fees even if the defendants prevailed at
arbitration.
D. The court found that the waiver of the plaintiffs' rights to a judicial forum considered
along with the defendants' retention of such rights and other unfair aspects of the
agreement required a finding that the arbitration agreement was void.
E. The court found that the agreement was void because a consumer loan transaction
was involved.
After the initial renewal, assuming a trademark was initially registered after 1990, how
often must the trademark be renewed?
A. Every nine years.
B. Every ten years.
C. Every eleven years.
D. Every twelve years.
E. Every thirteen years.
Which of the following is the minimal standard essential for the development of
business ethics?
A. Meeting the requirements of deontology.
B. Meeting the requirement of the public disclosure test.
C. Meeting the requirement of utilitarianism.
D. Satisfying the company's board of directors.
E. The legality of a decision.
Which of the following is true regarding writings created at the same time as a written
agreement?
A. Although the parol evidence rule applies to writings created at the same time as the
written agreement, these writings tend to be treated differently than prior or
contemporaneous oral agreements in that the writings are more readily admitted as part
of the written agreement than is oral evidence.
B. Although the parol evidence rule applies to writings created at the same time as the
written agreement, these writings tend to be treated differently than prior or
contemporaneous oral agreements in that the writings are less likely to be admitted as
part of the written agreement than is oral evidence.
C. The parol evidence rule applies to writings created at the same time as the written
agreement, and these writings are analyzed in the same way as prior or
contemporaneous oral evidence.
D. The parol evidence rule applies to writings created at the same time as the written
agreement only if a sale of goods is involved, and in that case the writings are analyzed
in the same way as prior or contemporaneous oral evidence.
E. The parol evidence rule does not apply to writings created at the same time as the
written agreement.
Which of the following is a will that the testator writes and signs in his or her own
handwriting?
A. Invalid
B. Holographic
C. Penciled
D. Penned
E. Pencil and penned
Which of the following was the result in the case in the text In re Girolamo Afonica, the
case in which a debtor's bankruptcy discharge was challenged by a bank that held a
security interest in a vehicle that the plaintiff, without notice to the bank, transferred to
a junk dealer because his ex-wife did not like it sitting in her driveway?
A. The court found that the debtor transferred the vehicle with the specific intent to
hinder, delay, or defraud the plaintiff and that his discharge would be denied in total as
to all debts, not just the one owed to the plaintiff bank.
B. The court found that the defendant's bankruptcy discharge would not be denied in
total, but that the discharge as to the plaintiff bank's interest would be denied.
C. The court found that the defendant's bankruptcy discharge would be allowed in total,
including the discharge as to the vehicle, because the bank failed to notify the defendant
that he was required to provide notification prior to disposing of collateral.
D. The court found that the defendant's bankruptcy discharge would be allowed in total,
including the discharge as to the vehicle, because the bank failed to prove that the
defendant acted with malice.
E. The court found that the defendant's bankruptcy discharge would be allowed in total,
including the discharge as to the vehicle, because the vehicle was worth less than
$1,000 at the time of transfer.
Which of the following is a special type of lease?
A. Consumer and finance but not terminal
B. Finance but not consumer or terminal
C. Terminal and finance but not consumer
D. Terminal but not finance or consumer
E. Consumer but not finance or terminal
"Dress Shop Problems." Susie, who has a ladies' dress shop, reached an oral agreement
with Kim, a wholesaler, to purchase 100 dresses for $80 each, with the dresses to be
delivered within 30 days. Kim later orally agreed to a modification whereby she would
add ten belts to go along with certain dresses at no extra charge. Kim did so because she
wanted to maintain Susie's good will. Susie sent Kim a memo confirming their oral
agreement, including the modification, but heard nothing. When the dresses did not
arrive within 30 days, Susie checked with Kim. Kim told her that their agreement was
no good because Kim never signed anything and that the UCC does not apply in the
retail arena.
Which of the following is true regarding whether the agreement between Susie and Kim
for the sale of dresses satisfied the writing requirement of the UCC?
A. The agreement is likely binding because under the UCC, if two merchants have an
oral agreement, a written memo from either party to the other is deemed to satisfy the
statute of frauds, even if it is not acknowledged by the receiving party. If it is not
objected to within 10 days of receipt, the oral agreement, memorialized by the memo, is
binding.
B. The agreement is likely binding because under the UCC, if two merchants have an
oral agreement, there is no requirement of a writing so long as another witness is
willing to confirm that within 10 days of the agreement, one of the parties memorialized
the agreement by a memorandum to the file, even if it was not sent to the other party.
C. The agreement is binding because the UCC has no requirement of a writing under
any circumstances.
D. The agreement is not binding because Kim never signed anything by which she
agreed to the terms of the oral agreement.
E. The agreement is not binding because Susie did not send Kim a registered letter
memorializing the oral conversation as is required by the UCC.
Susan purchased a refrigerator from ABC Appliance store for $800. She takes the
refrigerator home and discovers that it is defective. She calls ABC Appliance store and
tells them that she would like to return the refrigerator. ABC Appliance store tells her
that they have assigned the promissory note she provided the store in order to purchase
the refrigerator to a finance company and that the finance company, as a holder in due
course, is not subject to defenses. Which of the following is true regarding the rights of
parties?
A. The finance company is subject to the defenses of Susan because of the Federal
Trade Commission rule created to protect consumers.
B. ABC Appliance store is correct in that Susan cannot assert her defenses against the
finance company.
C. Susan can assert her defenses against the finance company only if she can prove that
the finance company had knowledge that ABC Appliance store sold defective
equipment from time to time.
D. Susan can assert her defenses against the finance company only because she gave
notice of the problem within 5 days of the sale.
E. Susan can assert her defenses against the finance company only if she agrees to
arbitrate the dispute.
Which of the following is a writing that demonstrates a right to payment of money?
A. Chattel paper.
B. Goods paper.
C. Payment paper.
D. An instrument.
E. An authorization.
Several merchants signed a binding arbitration agreement with American Express Co.
The arbitration agreement included a clause prohibiting class action arbitration. Later,
after a serious dispute arose involving a federal statute, the merchants wanted to pursue
class action arbitration against American Express arguing that it would be too expensive
to pursue the claims individually. Assuming the Federal Arbitration Act applies, how
should a court rule on the issue?
A. The court should uphold the agreement prohibiting class action arbitration.
B. The court should strike the whole arbitration agreement because a claim under
federal law is involved, and the parties should be required to go to court for any relief.
C. The court should uphold the arbitration agreement itself but strike the provision
prohibiting class action arbitration.
D. The court should uphold the arbitration agreement itself and uphold the class action
provision but limit any class action proceeding to no more than 20 plaintiffs.
E. The court should uphold the arbitration agreement itself and uphold the class action
provision but limit any class action proceeding to no more than 10 plaintiffs.
Which of the following was the result in Iglesia Cristiana La Casa Del Senor Inc., Etc.
v. L.M., the case in which an alleged victim sued the former pastor and a church
alleging the pastor had sexually assaulted her when she was a minor?
A. That the assault did not occur within the scope of the pastor's employment and that
the church was not vicariously liable for his act.
B. That the assault occurred within the scope of the pastor's employment and that the
church was vicariously liable for his act.
C. That although the assault did not occur within the scope of the pastor's employment,
the church was vicariously liable for the act because of its criminal nature.
D. That the church was vicariously liable because it knew of the criminal act but did
nothing.
E. That regardless of whether or not the assault occurred within the scope of the pastor's
employment, the church was vicariously liable because it had negligently hired the
priest.
In which of the following did Congress make comprehensive changes to bankruptcy
law?
A. The Bankruptcy Trust, Reconciliation, and Remedial Amendments of 2000
B. The Bankruptcy Fraud Protection Act of 2007
C. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005
D. The Bankruptcy Fraud and Consumer Shield Act of 2006
E. The Insolvency Protection Amendments of 2006
"Fixture Mishap." Trudy owns a hardware shop that also sells expensive bathroom
fixtures. Theresa, a whiz with tools, purchased for $400 some expensive powder room
fixtures for her bathroom. Trudy had only one set of the fixtures Theresa wanted.
Although Theresa noticed a slight discoloration on one of the faucets, she went ahead
with the contract because Trudy indicated that she would remedy the situation should
the problem become worse. Because they were friends and attended the same church,
Trudy gave Theresa 90 days in which to pay. A month later and before she paid for the
fixtures, Theresa called Trudy and told her that the fixtures were corroding, the
discoloration had worsened, and the fixtures looked terrible. Trudy told her that she
would get replacements, but six months later they had not arrived. Trudy told Theresa
that they were on back order. At that point, Theresa purchased fixtures elsewhere for
$500 and informed Trudy that she could pick up the corroded fixtures at her front door.
Trudy picked up the fixtures. They were obviously defective, but Trudy was able to
resell them for $100. Trudy told Theresa that she would have gladly provided fixtures
that would not corrode if she had only a bit more time, that Theresa should have given
her a chance to do so, and that as far as Trudy is concerned, Theresa owes $300. Which
of the following most accurately describes the action taken by Theresa?
A. Theresa breached the contract
B. Theresa revoked acceptance and covered
C. Theresa canceled the contract and exchanged
D. Theresa substantially performed
E. Theresa engaged in a trade modification
Regarding the "Case Opener," which of the following best represents the decision on
whether the cell towers at issue constituted goods?
A. That the contract involving the purchase of the cell towers was predominately for the
purchase of real estate and that the towers were, therefore, not goods.
B. That the contract involving the purchase of the cell towers predominately involved
cellular telephone service and that the towers were, therefore, not goods.
C. That the contract involving the purchase of the cell towers was not for goods because
the towers were not easily movable.
D. That the contract involving the purchase of the cell towers was predominately for
goods because common law was applied by contract.
E. That the contract involving the purchase of the cell towers was predominantly for the
sale of goods for reasons including that the towers had physical property and could be
moved.
When may a plaintiff request a right-to-sue letter once a charge has been filed with the
EEOC?
A. At any time after the charge is filed.
B. At any time after 180 days have elapsed since the filing of the charge.
C. At any time after 90 days have elapsed since the filing of the charge.
D. At any time after 60 days have elapsed since the filing of the charge.
E. The plaintiff does not have the right to request a right-to-sue letter from the EEOC.
When courts interpret sales and lease contracts, how do they prioritize express terms,
course of performance, course of dealing, and usage of trade?
A. (1) Express terms, (2) Course of performance, (3) Course of dealing, and (4) Usage
of trade
B. (1) Usage of trade, (2) Course of performance, (3) Course of dealing, and (4)
Express terms
C. (1) Express terms, (2) Course of dealing, (3) Course of performance, and (4) Usage
of trade
D. (1) Course of performance, (2) Course of dealing, (3) Express terms, and (4) Usage
of trade
E. (1) Express terms, (2) Usage of trade, (3) Course of dealing, and (4) Course of
performance
Which of the following is a principle of The Paris Convention of 1883?
A. National treatment
B. Nonconditional protection
C. Complex treatment
D. Enforcement priority
E. Treaty affirmation
Which of the following exemptions permits a debtor to retain all or a portion of the
family home so that the family will retain some form of shelter?
A. Real estate
B. Real
C. Personal estate
D. Homestead
E. Shelter
The process of settling an estate is known as _____.
A. Settlement
B. Review
C. Granting
D. Probate
E. Devise
When was the Sherman Act enacted?
A. 1890
B. 1925
C. 1935
D. 1943
E. 1958
Which of the following enforces the Resource Conservation and Recovery Act?
A. The Hazardous Response Commission
B. The Hazardous Waste Administration
C. The Environmental Protection Agency
D. The Environmental Waste Agency
E. The Clean Earth Foundation
Which of the following accepts and signs a draft to agree to pay the draft when it is
presented?
A. Maker
B. Acceptor
C. Drawer
D. Endorser
E. Promisor
Which of the following is not a way in which a contract may be discharged by operation
of law?
A. Alteration of the contract
B. Bankruptcy
C. Impossibility of performance
D. Accord and satisfaction
E. Commercial impracticability
"Used Car Sales." Walter sells used cars. He is seeking a way to increase sales and
profits because he would like to take his girlfriend on a nice diving trip to the Grand
Cayman Islands. The first thing that Walter does is say that during the first week of
December, he will give a $500 rebate on used cars that are under two years old. To
spice things up, he also offers to sell any car on the lot that is over five years old for
$1,000 to the first three customers who can hula hoop ten hours straight on December
7th. (Hula hooping was a practice popular some years ago in which a large hoop would
be swung around by a person, usually around the waist.) Walter was not very concerned
about the hula hooping issue because he thought that no one would be able to hula hoop
for ten hours straight. Walter put an advertisement pertaining to the rebate and the hula
hoop opportunity in the local newspaper. The promotion went over very well. Although
Walter had several cars available, he ran out of cars under two years old within one day.
During the rest of the week shoppers were told that no cars of that description were
available. Sam was very angry at Walter for not having a car available that was under
two years old so that he could get a good deal and a $500 rebate. On December 7th,
while Walter was watching the hula hoopers, Sally was shopping for a car. She was in
college and did not have much money. She saw one, an older car, a real clunker, that
she liked; but she really did not know if it could be repaired sufficiently to be
dependable. Walter had not even put a price on it because he planned to have it crushed.
Sally was going to talk to her parents about it. Walter eventually approached her, and
Sally asked him if he would take $450 for the car. Walter said, "Yes, sold." Sally tried to
explain that she needed to talk to her parents first, but Walter would not hear of it.
While Walter was still fuming from his encounter with Sally, Zack walked up and
started to criticize the nature of Walter's inventory. Walter told him that he had great
cars. Zack pointed at an old jalopy that was banged up, had 200,000 miles on it, and a
cracked windshield. Zack said, "Sure, I'll pay $100,000 for that car!" Walter said,
"Sold." Zack said, "Wait a minute. I was only kidding." Walter said, "No way."
Meanwhile all the hula hoopers dropped out well prior to ten hours of hula hooping
except for Barbara. She completed the hula hooping and asked for her car for $1,000.
Walter refused saying that the offer was revoked. Sam and Barbara sued Walter, and
Walter sued Zack and Sally. Under the applicable law in Walter's state, common law
will be applied, and there are no state statutes impacting the situation.
What is the most likely result in the lawsuit brought by Walter against Zack?
A. Walter will win because Zack properly made an offer that Walter accepted.
B. Zack will win because he was merely expressing possible interest.
C. Zack will win because Walter did not properly accept.
D. Zack will win because under a subjective standard he was joking.
E. Zack will win because under an objective standard, it appears he was joking.
Striking union members of ABC Company decide that picketing ABC Company is not
accomplishing the desired results and decide to further their efforts. Sally, the union
president suggests that they picket XYZ Company, a supplier to ABC, to pressure XYZ
into not doing business with ABC. Which of the following is true regarding Sally's
plan?
A. Sally's plan is a good idea, and this type of picketing is frequently and legally
engaged in by union members during labor disputes.
B. Sally's plan is a good idea only if the strike has been going on for over 30 days
because under the National Labor Relations Act, union members may not picket any
company other than the employer for at least 30 days.
C. Sally's plan is a good idea only if the strike has been going on for over 90 days
because under the National Labor Relations Act, union members may not picket any
company other than the employer for at least 90 days.
D. Sally's plan is legal only if XYZ employees are represented by the same union as
ABC employees.
E. Sally's plan is illegal because of the prohibition against secondary boycotts occurring
during a labor dispute.
Bruce operates a power plant that emits mercury. He has older pollution control
equipment and constantly struggles with his discharges. Renee also operates a power
plant. She tells Bruce that she is investigating the purchase of modern pollution
equipment that would result in the mercury discharge of her company being
significantly under the amount of allowable mercury discharge. Renee tells Bruce,
however, that the equipment is very expensive. She proposes that she and Bruce lobby
legislators for marketable discharge permits in the mercury area. What is she
referencing and how would it work? Do you think this is a good idea, and why or why
not?
"Appellate Court." Jim, who is a bit eccentric, says that he is fed up with the way a
certain employer in his town treats employees and that he is going to sue on behalf of
all those employees. Jim also says that he is going to start his case at the appellate court
level, skipping over all those "lesser" judges. Jim says that those justices will surely
hear him out and that he will also seek a jury.
Will an appellate court hear Jim's case?
A. Yes, so long as a state trial court judge approves and certifies the case for the
appellate court without holding a trial first.
B. Yes, but only if Jim can prove that he would have had to wait at least a year for a
trial at the trial court level.
C. Yes, but only if Jim files his case in state court as opposed to federal court.
D. Yes, but Jim is not entitled to a jury.
E. No, because Jim is required to first file the case in the appropriate trial court.
Which of the following is the age of majority in regard to the right to contract in Great
Britain?
A. 18
B. 19
C. 21
D. 16
E. There is not a set age of majority
Major credit reporting agencies are now required to provide consumers with a free copy
of their credit reports every ____.
A. Three years
B. Two years
C. 18 months
D. 12 months
E. 6 months
