In order to exclude the implied warranty of merchantability, the seller must put the
exclusion in writing.
Answer:
People who are involved in a nonprofit association are considered partners.
Answer:
Goods sold “with all faults” are sold without the implied warranties of merchantability
and fitness for a particular purpose.
Answer:
Consumers Assurance was Lin’s insurance agent on a truck that was insured with
Casualty Company. Lin later purchased a car from Ted’s Toyota Dealership, but, before
he was allowed to remove it from the dealership, the dealer’s credit manager called
Consumers to verify that the new car would be insured. A Consumers’ employee
indicted that the car was insured by Casualty. Based on these assurances, Lin took
delivery of the new car, started driving it, and paid the insurance premiums when they
became due. Several months later, Lin wrecked the car and filed an insurance claim.
Casualty denied coverage on the grounds that it had never agreed to insure the car. Lin
sued Casualty, alleging that the agency relationship between Casualty and Consumers
bound the insurer to the assurances made by its agent. Casualty denied that an agency
relationship existed. Discuss.
Answer:
Truth is not a defense to a defamation action.
Answer:
A copyright comes into existence in the United States only after the work has been
registered with the appropriate governmental office.
Answer:
Statutes that impose a significant license fee and allow anyone who pays the fee to
obtain a license are classed as regulatory.
Answer:
The law of negligence prosecutes a defendant even if his or her’s breach of duty wasn’t
the actual cause of the plaintiff’s injuries.
Answer:
An accountant is not required to reimburse a client for a penalty imposed for late filing
if the delay is caused by the accountant.
Answer:
An agent does not possess the implied authority to do whatever is reasonably necessary
to accomplish the objectives of the agency.
Answer:
An offer by itself does not include terms that limit its life.
Answer:
In recent years, the law has recognized that owners of real property are not required to
take steps to further the safety of persons on their property.
Answer:
The general rule is that an offeror cannot revoke an offer at any time prior to
acceptance if he has promised not to revoke for a stated period of time.
Answer:
Distributors are usually compensated through the payment of a commission when a
sale is completed and have to bear the financial risk of nonpayment by the purchaser.
Answer:
The doctrine of substantial performance applies when a promisor willfully fails to
completely perform.
Answer:
A person may have apparent authority even though she has never been appointed an
agent by the principal.
Answer:
According to the Foreign Corrupt Practices Act (FCPA), a U.S. firm is not liable for
bribes made by its foreign agents under any circumstances.
Answer:
In order to appeal a decision:
A. a party must claim that the court made an error of law or that the evidence in the trial
did not support the trial court’s decision.
B. a party need not have objected to a judge’s action at the time the alleged error was
made.
C. a party must prepare for a new fact-finding process.
D. the defendant must show that the errors made were not material.
Answer:
Which of the following statements is TRUE about the Cyber Security Enhancement
Act of 2002?
A. It prohibits acts of sabotage or vandalism to protected computers or networks.
B. It authorizes death penalty for individuals who knowingly or recklessly commit a
computer crime specifically in foreign commerce.
C. It authorizes a 10-year sentence for individuals who recklessly commit a computer
crime that results in serious bodily injury.
D. It allows an ISP to disclose private information to a government agent if the ISP
believes that the information concerns a serious crime.
Answer:
Corporate codes of ethical conduct:
A. effectively deter unethical behavior.
B. are sometimes viewed as a thinly-veiled attempt to mislead the public into thinking
that the company behaves ethically.
C. accurately reflect the values of society.
D. tend to expressly publish policies that deal directly with corruption to avert legal
measures that might impose severe constraints.
Answer:
The explosion of government regulation in the United States has witnessed an
accompanying social phenomenon of great importance which is:
A. the creation of the CAN-SPAM ACT.
B. the creation and widespread use of administrative agencies.
C. the creation and widespread use of the Federal Trade Commission.
D. the creation of antitrust laws.
Answer:
Patents, trademarks, copy rights, and trade secrets are basic types of:
A. intellectual property.
B. community property.
C. business property.
D. patented property.
Answer:
In terms of an S corporation, which of the following requirements must be maintained
so that the corporation does not lose its tax status?
A. There can be no more than 120 shareholders in an S corporation.
B. The shareholders must all be corporate shareholders or partnerships.
C. The losses and earnings are not to be reported on the shareholders’ individual tax
returns.
D. Shareholders must consent in writing to having the corporation taxed as a
partnership.
Answer:
According to Congress, the Fair Credit and Charge Card Disclosure Act:
A. would enable consumers to shop around for the best cards.
B. would prevent unauthorized use of credit cards.
C. would challenge the authority of the FTC.
D. would compel issuers to process customer applications faster.
Answer:
An instrument must be signed to qualify as a negotiable instrument. Which of the
following statements is TRUE of this basic requirement?
A. An instrument in the form of a note must be signed by the payee who accepts the
promise of the issuer.
B. An instrument in the form of a draft must be signed by the person giving the
instruction to pay.
C. An instrument is considered to be negotiable only when the maker signs by writing
his name on it.
D. A person or company cannot authorize an agent to sign instruments for it.
Answer:
Gavin tells Rod that he will pay him $400 to paint his house. Rod starts to paint,
intending to accept. Halfway through his paint job, Gavin tells Rod that he wants to
revoke the offer. Under this scenario:
A. Gavin is not allowed to revoke because the contract is unilateral.
B. Gavin is allowed to revoke, but is liable to Rod for the reasonable value of benefit
received.
C. Gavin may not revoke because the contract is bilateral.
D. Gavin is allowed to revoke if he finds Rod’s efforts half-hearted or ineffective.
Answer:
The problem with the view that a corporation should attempt to act in the best interests
of all of its various constituencies is that:
A. this tactic ignores the bottom line.
B. corporate managers often have a better sense of what is right.
C. the values of these constituencies may conflict.
D. local communities will not benefit from these values.
Answer:
Under the Uniform Electronic Transactions Act:
A. consent must be affirmatively given each time a transaction is made.
B. consent and withdrawal are identical to that of the E-Sign Act.
C. there are no specific rules governing when consent has been given electronically.
D. a PIN number used to access an ATM is not considered as a digital signature.
Answer:
In general, if the offeree uses a means of acceptance that is slower than that used by the
offeror to communicate that offer:
A. it is an unauthorized means of communication.
B. the acceptance is not effective even upon receipt.
C. it is an authorized means of communication.
D. the acceptance is effective when dispatched.
Answer:
Under Section 11(a) of the 1933 Act, accountants:
A. are liable only if privity of contract is with the purchaser.
B. are liable for materially defective registration statements unless they can prove that
they exercised due diligence.
C. are liable only to purchasers who relied upon the omissions or falsities in the
registration statements.
D. are not liable to any purchaser of securities issued pursuant to a defective registration
statement.
Answer:
A non-indorsing transferor:
A. makes all five transferor’s warranties only to the immediate transferor.
B. makes all five transferor’s warranties to all subsequent holders.
C. makes only four transferor’s warranties to the immediate transferor.
D. makes all five transferor’s warranties, with a change in the fourth warranty, to all
subsequent holders.
Answer:
An “agency at will” means that:
A. each party has the power to terminate the agency even if there is no contractual right
to do so.
B. only the principal has the right to terminate the agency at his will.
C. both parties may mutually agree to modify their agency contract at will.
D. only the agent can terminate the agency.
Answer:
Explain the promoters’ liability to third parties before the corporation is formed.
Answer:
Define the situations that lead to dishonoring of a note by the maker.
Answer:
Name the most common ways a buyer may breach a contract.
Answer:
What are the main factors necessary for third parties to claim recovery for negligent
infliction of emotional distress?
Answer:
Describe Superfund’s “Community Right to Know” requirement.
Answer:
Describe the key features of the enhanced judicial scrutiny test adopted by the board to
protect the original merger transactions.
Answer:
Briefly explain the extraterritorial reach of the U.S patent law.
Answer:
What are the essential elements that must be shown by the government to obtain a
criminal conviction?
Answer:
Answer:
Why do courts require justifiable reliance in misrepresentation and fraud?
Answer: