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1) joe is the personnel manager for the bfg corporation. joe hires employees for bfg. joe
hires suzy as a management trainee. suzy is bfgs subagent.
2) the u.s. constitution allows ex post facto criminal laws.
3) corporations are generally liable on preincorporation contracts signed by their
promoters.
4) ratification ends the right to rescind a contract.
5) parties to sale contracts should not necessarily act in a commercially reasonable
manner and good faith.
6) an instrument that is payable on the happening of some uncertain event is negotiable.
7) the mutual agreement necessary to create an express contract is evidenced by
writing.
8) a general partner in an lllp will have unlimited liability if the lllp was formed
defectively.
9) sean goes to pinnacle corp., convinces the store manager that he is their loyal online
customer ryan and purchases a dvd credited to ryan's account. he then sells the dvd to
jason for a higher price. when ryan finds out, he wants the dvd back from jason. which
of the following is true of the case?
a.ryan is the good faith purchaser in this deal.
b.pinnacle can get the dvd from jason.
c.sean has voidable title to the dvd.
d.jason needs to pay sean as well as pinnacle.
10) which of the following is applied in a lawsuit between two private parties?
a.criminal law
b.civil law
c.procedural law
d.public law
11) acecom corporation issues dividends to its 30 shareholders. each shareholder is well
aware that the corporation will be insolvent and unable to pay its creditors following the
dividend distribution. efone is one such creditor. under the model business corporation
act (mbca), primary liability to efone:
a.does not lie with the shareholders because they can never be held liable to creditors of
the corporation.
b.lies with the shareholders because they received the distribution from the corporation
with knowledge of the impending insolvency.
c.lies with the directors because they authorized the unlawful distribution of dividends.
d.does not lie with the directors because they placed the interests of the shareholders
above everything else.
12) which of the following characterizes a tenancy in common?
a.each tenant has equal right to possess and use the property.
b.the tenants must be a married couple.
c.it grants the right of survivorship.
d.tenants are not allowed to divide the property.
13) which of the following convey whatever title the grantor has at the time he executes
the deed but do not contain warranties of title?
a.grant deeds
b.quitclaim deeds
c.special warranty deeds
d.general warranty deeds
14) joe buys some watermelon seed from a seed manufacturers catalog. the catalog
describes the seed joe buys as top quality. joe strongly relies upon this statement in
making the purchase. the seed turns out to be worthless, and joe sues the manufacturer
for breach of express warranty. you are the attorney representing the manufacturer.
which of the following is your best argument for escaping liability?
a.that a catalogue statement cannot create an express warranty.
b.that the basis-of-the-bargain requirement was not met.
c.that the alleged warranty was merely sales talk.
d.that the manufacturer did not give a sample or a model of the seed.
15) a principal is _____ if a third party knows or has a reason to know that the agent is
acting for a principal and the principals identity.
a.formalized
b.nonexistent
c.disclosed
d.undisclosed
16) the means test is designed to determine the:
a.debtors ability to repay general unsecured claims.
b.creditors ability to recover unpaid claims from the debtor.
c.courts ability to guarantee exemptions for the debtor.
d.governments ability to bar corporations from availing the provision of discharge of
debts.
17) some legal positivists believe that:
a.an unjust law is not law.
b.the validly of enacted laws should be obeyed, just or not.
c.the law should keep up with changing times.
d.justice is what the judge ate for breakfast.
18) tom steals daves checkbook, completes a check for $1000, forges daves signature,
and gets payment from toms bank. the bank paid in good faith. who is liable to the bank
for the $1000 in this case?
a.tom
b.dave
c.both tom and dave
d.neither tom nor dave
19) partners are not liable to their partnership for losses resulting from:
a.gross negligence.
b.reckless conduct.
c.intentional violation of the law.
d.honest errors in judgment.
20) a(n) _____ is a separate contract in which an offeror agrees not to revoke her offer
for a stated time in exchange for some valuable consideration.
a.offer
b.option
c.bid
d.advertisement
21) which of the following characterizes an output contact?
a.the buyer must accept whatever amount the seller produces, no matter how large.
b.the buyer must accept a reasonable amount from the seller, but no more.
c.the buyer must accept any amount that is reasonably proportionate to any stated
estimate in the contract.
d.the buyer must accept a conscionable amount from the seller, but no more.
22) a holder in due course is subject to the defense of _____ if the maker of a note
wrote it under a threat of force.
a.fraudulent inducement
b.infancy
c.duress
d.breach of warranty
23) a person who is injured in his/her business or property by reason of a professionals
conduct or participation, directly or indirectly, in an enterprises affairs through a pattern
of racketeering activity may recover _____ from the professional.
a.only part of the damage for which the professional is responsible
b.five times his/her actual damages
c.three times his/her actual damages
d.only his/her actual damages
24) strict liability offenses:
a.dispense with the requirement of proof of any criminal intent on the part of the
defendant.
b.are so classified because the punishments imposed on violators are especially harsh in
comparison to the punishments for other criminal offenses.
c.impose liability on a defendant for the act of another party.
d.are commonly criticized on the ground that a person may not be convicted of such an
offense without being shown to have committed a wrongful act.
25) according to ucc 2-315s _____ for a particular purpose arises when the seller has
reason to know a particular purpose for which the buyer requires the goods.
a.express warranty
b.warranty of merchantability
c.implied warranty of fitness
d.multiple express warranties
26) a check drawn by a credit union on its account at a federally insured bank would be
an example of a:
a.cashiers check.
b.tellers check.
c.counter check.
d.travelers check.
27) why is it impossible for there to be apparent authority on behalf of an undisclosed
principal?
28) why does the code provide for accommodation in cases of acceptance by shipment
of nonconforming goods?
29) tony enters into a contract with joseph to supply his entire output of guava of each
season from his orchid at the then current market price. the guava is to be used by
joseph for making jams. however, the contract didn't contain any clause as to when it
can be terminated. tony gave a one-year notice period to joseph prior to termination of
the contract. joseph intentionally didn't do any arrangements for himself to acquire
guavas from elsewhere. when tony expressed his inability to supply joseph the guava
after one year, joseph sued tony for breach of contract. whether or not the approach of
joseph is justified?
30) dave owes $100,000 to cindy and $100,000 to connie. both before and after dave
went into bankruptcy under chapter 7, he engaged in faking records, withholding
information, and concealing assets in order to avoid cindys debt. however, dave did not
behave this way with regard to connies debt. because dave had few assets and connies
debt was unsecured, she got virtually nothing out of daves bankruptcy. the same is true
regarding cindy. sometime later, therefore, cindy and connie sue dave on the debt once
dave becomes rich. dave defends by saying that both debts are discharged. is dave
right? assume that each debt is a normal contract obligation.
31) donald is the trustee of a trust set up by simpson, with adams as beneficiary. the
trust property consists almost entirely of income-producing real property--office
buildings, apartment complexes, etc. by putting a p or an i in the appropriate space,
indicate whether the following fund transactions should be allocated to principal (p) or
to income(i).
1> rental income received from tenants on trust property.
2> capital gains realized from the sale of trust real estate.
3> property tax payments on trust property.
4> building management fees for trust property.
5> costs of ordinary repairs to trust property.
6> property insurance premiums on trust property.
7> the cost of long-term permanent improvements to trust property.
32) xavier, yellie, and zelda are partners of koral associates. the term of the partnership
is 5 years, but zelda withdraws after 1 year because she no longer wished to continue.
discuss the nature and consequences of zeldas dissociation.
33) jack and jill moved to their dream home in rural county. one month later, otis
decided to develop the back 10 acres of his 200-acre farm (nearly all of which had
consisted of corn and soybean fields) into a hog-raising operation. unfortunately for
jack and jill, the said back 10 acres adjoined their property. jack and jill claimed that the
smell of the hog operation was overwhelming and that they could no longer enjoy
living in their dream home. they also thought the hog operation has caused their
property value to decline substantially. rural county had no zoning regulations in effect.
under what legal theory, if any, may jack and jill seek legal relief? explain.
34) what is the purpose of vesting?
35) in general, settlements of liquidated debts are not binding due to the absence of
consideration, while settlements of unliquidated debts are a binding accord and
satisfaction. as a matter of technical consideration law, what justifies this distinction?
