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When the organization in charge of proposing uniform laws proposes a statute, which of
the following is true?
A. All states must adopt the uniform statute within one year.
B. All states must adopt the uniform statute within six months.
C. The uniform statute automatically goes into effect without any action by state
legislatures.
D. A state legislature is not required to adopt the uniform statute; but if the state
legislature decides to go forward with adoption, all portions of the statute must be
adopted.
E. A state legislature can ignore the proposed uniform law, adopt it in full, or adopt it in
part.
What type of collateral must be perfected through possession?
A. Certificates of deposit.
B. Stocks.
C. Bonds.
D. Certificates of deposit, stocks, and bonds.
E. There are no types of collateral that must be perfected through possession.
For how long does each member at the head of the Securities and Exchange
Commission serve?
A. Five years
B. Three years
C. Two years
D. One year
E. Eighteen months
Which of the following is false regarding the parol evidence rule?
A. It is not limited to spoken words.
B. It is a rule of evidence.
C. It relates to substantive legal issues.
D. It is an amalgamation of different rules and conditions.
E. It applies to writings created at the same time as the written agreement.
Which of the following is a draft with respect to which the drawer and drawee are the
same bank or branches of the same bank?
A. Cashier's check
B. Traveler's check
C. Certified check
D. Cashier's checks, traveler's checks, and certified checks
E. A cashier's check and a traveler's check, but not a certified check
Presidential Profits. Linda was president of a publicly traded tractor company, Tough
Tractors. Linda became aware that stock in her company would likely increase
significantly in value because her company had a contract to purchase the assets of
Rough Tractors. The boards of both companies wanted the information kept
confidential until the purchase was complete and a news release was made. Before the
news was made public, Linda immediately purchased a significant number of shares in
Tough Tractors. Linda also told her friend Frank about the contract to purchase assets.
Frank, who knew that the information was not public, told his brother, George. Frank
and George purchased a number of shares of stock in Tough Tractors prior to any public
announcement of the sale. After the public announce was made and the purchase of
assets went through, Linda, George and Frank, all sold their shares in Tough Tractors
and made a nice profit. Which of the following would describe Linda in providing
information about the asset sale to Frank?
A. Tipper
B. Provider
C. Providee
D. Tippee
E. Revealor
Mistakes in contracts may be classified as _____.
A. void and voidable
B. enforceable and voidable
C. unilateral and void
D. mutual and enforceable
E. unilateral and mutual
In which of the following do parties select a neutral third party and explain their
respective positions to the neutral, who then evaluates the strengths and weaknesses of
the case?
A. Summary jury trial
B. Minitrial
C. Early neutral case evaluation
D. Private trials
E. Neutral submission
Which of the following are written contracts intended to be the complete and final
representation of the parties' agreement?
A. Complete contracts
B. Integrated contracts
C. Adhesion contracts
D. Bilateral contracts
E. Acknowledged contracts
What does the term "FAS" when used as a shipping term represent?
A. Fee at ship
B. Fee along shore
C. Freedom alongside
D. Free alongside
E. Free of basis
Under Article 2 of the UCC, which of the following consists of the passing of title from
the seller to the buyer for a price?
A. A lease
B. A transaction
C. A transfer of use
D. A sale
E. A negotiated transfer
In a conditional sales contract, a contract is a _____ if the seller allows the buyer to take
possession of the goods before deciding whether to complete the contract by making the
purchase.
A. sale-on-approval contract
B. sale-or-return contract
C. condition-or-sale contract
D. return-or-purchase
E. return-or-sale
Surprise Arrival. Gracie was surprised and pleased to find she was pregnant. She
worked as a waitress at Good Food and was aware that Groucho, her employer, had
allowed employees who were ill for reasons that were not work related to take paid time
off. For example, her friend Craig was off with pay for two months after suffering a
mild heart attack, and her friend Bonnie was off of work for three months when she ran
her personal watercraft into a dock and broke her leg. Gracie told her employer
Groucho about her pregnancy. He very angrily told her that pregnancy was completely
voluntary, that he was not paying her a dime when she was off work, and that she would
be lucky if he even allowed her to continue working at all because she would not be as
cute when she gained weight. He also said that he serves families, and he does not want
the kids to ask embarrassing questions of their parents regarding Gracie's condition.
Gracie was very angry and threatened to sue. Groucho told her, however, that he had
business law back in 1980 and that discrimination based on pregnancy is not even
covered by Title VII. The employee handbook did not address the issue. What will be
the likely result if Groucho defends on the basis that customers will object to Gracie's
condition?
A. If he can prove that is true, then Groucho will prevail on the defense of bona fide
occupational qualification.
B. Groucho will only prevail on a defense of bona fide occupational qualification if he
can establish that he has an established history of barring pregnant servers and that he
did not single out Gracie.
C. Groucho will only prevail on a defense of bona fide occupational qualification if he
can establish that Gracie was attempting to voluntarily get pregnant.
D. Groucho will not prevail on a defense of bona fide occupational qualification
because it is available in cases involving religion and national origin only.
E. Groucho will lose on a defense of bona fide occupational qualification because he
will not be able to establish that only non-pregnant employees can perform as servers.
To the Dogs. Alice loves all animals and is starting a new grooming business for dogs.
She believes that animals are very important and plans to exceed any applicable
regulations regarding cleanliness and health standards. Alice thinks some local
regulations make no sense. For example, there is a local ordinance that all dogs must be
kept on a leash at all times when not in a fenced area. Although Alice lives on a large lot
with plenty of room for dogs to run free, she plans to obey the leash regulation and all
others. She is aware, however, that members of the community have had success in
changing local regulations by petitioning the city council. Alice plans to proceed in that
manner to attempt a change in the leash law. Alice's plan to seek change through
following what others have done in the past by petitioning city council is rooted in
which of the following?
A. Legal positivism
B. The historical school
C. Legal realism
D. Natural law
E. Cost-benefit analysis
In most cases, when a minor marries, she or he is considered _____.
A. emancipated
B. freed
C. released
D. disaffirmed
E. either freed or disaffirmed depending on the circumstances
What does the establishment clause of the First Amendment provide?
A. That government cannot make a law prohibiting the free exercise of religion.
B. That government cannot make a law respecting an establishment of religion.
C. That government cannot make a law referencing religion in any manner.
D. That government cannot make a law prohibiting the free exercise of religion; that
government cannot make a law respecting an establishment of religion; and that
government cannot make a law referencing religion in any manner.
E. None of these
Why did Congress pass the Private Securities Litigation Reform Act of 1995?
A. To provide protection to companies who issue forecasts of earnings.
B. To provide stronger penalties against companies who issue forecasts of earnings that
turn out to be wrong.
C. To provide stronger penalties against insiders who trade on forecasts of earnings.
D. To provide protection to insiders who trade on forecasts of earnings.
E. To provide protection to companies who issued forecasts of earnings and also to
provide protection to insiders who trade on such forecasts.
What type of agreement do the parties have when the purchased goods are in some kind
of storage under the control of a third party, such as a warehouseman?
A. A goods-in-bailment contract
B. A simple delivery contract
C. An average delivery contract
D. A conditional sales contract
E. A goods-in-transfer contract
Hot Toaster. Rebecca bought a toaster from Super Store and brought it home. A friend
of hers, Greg, was at her house making toast. The toaster malfunctioned and shocked
Greg resulting in a small burn to his hand requiring medical attention. At a garage sale,
Rebecca also purchased a blender from a friend, Samantha. When she paid for the
blender, Rebecca said that it would be great for making smoothies. Samantha said
nothing and just smiled while taking Rebecca's money. Unfortunately, the blender was
not powerful enough to make smoothies. Which of the following is true regarding
whether Samantha made an implied warranty of fitness for a particular purpose to
Rebecca that the blender would make smoothies?
A. Samantha did not make an implied warranty of fitness for a particular purpose
because there is no proof that Rebecca was relying on Samantha to make the selection.
B. Samantha did not make an implied warranty of fitness for a particular purpose
because Samantha is not a merchant.
C. Samantha did not make an implied warranty of fitness for a particular purpose
because there is no proof that Rebecca was relying on Samantha to make the selection
and also because Samantha is not a merchant.
D. Samantha made an implied warranty of fitness for a particular purpose to Rebecca
that the blender would make smoothies because she had a duty to tell Samantha
otherwise.
E. Regardless of whether she said anything or not, Samantha made an implied warranty
of fitness for a particular purpose to Rebecca that the blender would make smoothies
because she sold the blender.
If a check is not presented to a bank within ____________ of its date, the check is
considered stale check.
A. 30 days
B. 90 days
C. 6 months
D. 9 months
E. None of these because under the UCC, a check cannot be considered a stale check.
In general, a(n) _____ mistake does not generally void a contract.
A. unclear
B. mutual
C. unilateral
D. clear
E. single
Which of the following is false regarding the ways by which a holder may take an
instrument for value?
A. The holder performs the promise for which the instrument was issued or has started
performance.
B. The holder acquires a security interest or other lien in the instrument.
C. The holder takes the instrument for payment of a preceding claim.
D. The holder exchanges the instrument for another negotiable instrument.
E. The holder exchanges the instrument for an irrevocable obligation to a third party.
A limited partnership is an agreement between at least _____ general partner(s) and
______ limited partner(s).
A. 1; 2
B. 2; 1
C. 1; 1
D. 2; 2
E. 10; 10
In the intellectual property arena, the term ______ refers to the overall appearance and
image of a product.
A. product appearance
B. trade dress
C. design fabrication
D. trade appearance
E. product application
A party who is in possession of an instrument that is payable to the party or to the
bearer of the instrument is known as a(n) _____.
A. holder
B. bearer
C. payee
D. issuer
E. transferee
What are the trial courts in the federal court system called?
A. U.S. district courts
B. U.S. circuit courts
C. Federal circuit courts
D. Federal jurisdictional courts
E. Preemptory courts
Which is not an intention tort against one's economic interest?
A. Disparagement
B. Intentional interference with a contract
C. Unfair competition
D. Fraudulent misrepresentation
E. Conversion
In which of the following does an aggressor pay cash to target shareholders?
A. Hostile tender offer
B. Cash tender offer
C. Immediate tender offer
D. Substantial tender offer
E. Asset tender offer
What are the three independent branches of the federal government?
A. Legislative, executive, and judicial
B. Legislative, commerce, and safety
C. Commerce, safety, and law enforcement
D. Executive, safety, and law enforcement
E. Law enforcement, judicial, and statutory
Which of the following do appellate courts primarily handle?
A. Questions of law
B. Questions of fact
C. Questions of law and fact
D. Cases when they initially enter the legal system
E. Questions of law and fact, and also cases when they initially enter the legal system
Proximate cause is also sometimes referred to as which of the following?
A. Actual cause.
B. Cause in fact.
C. Legal cause.
D. Significant cause.
E. Close cause.
