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1) a method of alternative dispute resolution in which a neutral third party helps the
parties reach a resolution of the dispute by facilitating communication, clarifying areas
of agreement, helping see each others viewpoints, suggesting settlement options, but
who cannot make decisions that bind the parties, is called:
a.conciliation.
b.mediation.
c.minitrial.
d.arbitration.
2) under the ucc secured transactions article, for a security interest to attach, the:
a.debtor must agree to the creation of the security interest.
b.creditor must properly file a financing statement.
c.debtor must be denied of all rights in the collateral.
d.creditor must take and hold the collateral.
3) which types of mergers have traditionally been subject to the greatest degree of
scrutiny under the clayton act?
a.horizontal mergers
b.vertical mergers
c.conglomerate mergers
d.product-extension mergers
4) hardware retailers deuce hardware co. and trueblue hardware corp. agreed to a
schedule of maximum prices that they will pay to hardware wholesalers with whom
they deal. what is the most likely stand that the supreme court will take under these
circumstances?
a.their action will be deemed unlawful according to the rule of reason analysis.
b.their action will be deemed lawful because only sellers can be guilty of price-fixing.
c.their action will be deemed lawful if their agreement results in savings to consumers.
d.their action will be deemed unlawful according to the per se analysis.
5) does the federal arbitration act (faa) override a state law vesting initial decision
making authority to a court or administrative agency?
6) which of the following is a market share factor that federal regulators consider when
determining the legality of horizontal mergers?
a.the probability of increasing concentration in the relevant market.
b.the prior conduct of the acquiring firm and the acquired firm.
c.the existence of barriers to the entry of new competitors into the relevant market.
d.the probable future competitive strength of the acquired firm.
7) guy and boyd make an oral contract whereby guy agrees to sell boyd, 480 widgets
(goods) at a price of $480. later, the parties want to modify the contract so that the price
would become $520. this modification:
a.must be in writing.
b.must be oral because the first contract was oral.
c.can be oral but need not be.
d.is unenforceable because the first contract is unenforceable.
8) the proxy solicitation process usually results in:
a.the chief executive officer controlling the corporation.
b.shareholders dominating the management of the corporation.
c.corporate democracy working at its best.
d.the board of directors dominating the management of the corporation.
9) able carefully drew a check for $10 on her checking account at abc bank, payable to
the order of baker. baker altered the check to read $100, and then negotiated it to cain.
cain presented the check for payment to abc bank, which paid cain $100. the bank then
deducted $100 from ables account. when able saw her bank statement she demanded
that abc credit her account for the altered check. abc credited ables account and then
sued cain. is cain liable?
a.yes, because cain violated a presentment warranty.
b.yes, because cain was a holder of the check.
c.no, cain is not liable if cain acted in good faith and was unaware of bakers alteration.
d.no, because cain is not holder in due course.
10) _____ include any reasonable expenses or charges that the buyer has to pay in
obtaining substitute goods in case of a breach of contract on the part of the seller.
a.incidental damages
b.unconscionable damages
c.penalties
d.consequential damages
11) which of the following situations is most likely a case of sherman act section 1
violation?
a.a manufacturer unilaterally assigns exclusive territories to its dealers.
b.a manufacturer unilaterally suggests a retail price to its dealers for its products.
c.a manufacturer causes its dealers to agree not to sell outside their dealership
territories.
d.a manufacturer limits the dealerships it grants in a particular geographic area.
12) which of the following typically characterizes community property?
a.partners get a share depending on who earned the property.
b.one partner may convey property without the others approval.
c.it is property acquired during marriage.
d.inheritance is covered under community property.
13) tina and tom are co-workers at acme corporation. as night custodians, they work
together cleaning the acme office building at night when the building is empty. tom
regularly makes sexual advances toward tina that distress her. however, tina has never
complained about toms conduct to her supervisor, mary, who only works during the
day. which of the following statements is most accurate?
a.acme corporation is strictly liable for toms harassment of tina.
b.acme corporation may defend that it did not know about toms harassment of tina.
c.acme corporation is not liable because tom is not tinas supervisor.
d.acme corporation is not liable because tina voluntarily accepted the job of a night
custodian.
14) todd is a licensed real estate broker in ohio. one of todds largest clients, sun corp.,
contracted in writing with todd to find a purchaser for its plant in new york and agreed
to pay him a 6% commission if he were successful. todd located a buyer who purchased
the plant. unknown to todd, new york has a real estate brokers licensing statute which is
regulatory in nature, intended to protect the public against unqualified persons. todd
violated the licensing statute by failing to obtain a new york license. if sun refuses to
pay todd any commission and todd brings an action against sun, he will be entitled to
recover:
a.nothing.
b.a fee based on the actual hours spent.
c.the commission agreed upon.
d.out of pocket expenses only.
if the statute is regulatorythat is, the purpose of the legislation is to protect the public
against dishonest or incompetent practitionersan agreement by an unlicensed person is
generally held to be unenforceable.
15) which source of law requires the acceptance to be a mirror image of the offer in
order to form a contract?
a.common law
b.constitutional law
c.natural law
d.theocratic law
