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1) if a state law discriminates against interstate commerce, then the strictest scrutiny
will be applied in determination of its constitutionality.
2) a novation is said to take place when continuing partners release a dissociated partner
from liability but creditors do not release him.
3) remote control devices used for automatic garage doors are examples of fixtures.
4) a principal is always liable for the acts of his agent.
5) most state laws say that a valid mechanics lien has priority over all other liens that
attach after the first work is performed or the first materials are furnished.
6) sounds that reverberate across the plaintiffs land are more likely to be classed as a
nuisance than as a trespass to land.
7) an llc member has no individual liability on llc contracts, unless he/she also signs llc
contracts in his/her personal capacity.
8) the defendant must wait until after the pleadings have been completed before making
a motion to dismiss.
9) helen worked for abc motors for 25 years. the president of abc said to her: in
consideration of your past service for 25 years, i promise to give you a new car next
week. however, he did not give the car. is this promise legally enforceable?
a.yes, a contract was formed.
b.yes, promissory estoppel requires enforcement of the promise.
c.no, legal consideration is absent.
d.no, legal capacity is absent.
10) a _____ is a claim of the person obligated on the instrument against the original
payee of the instrument.
a.real defense
b.personal defense
c.claim in recoupment
d.claim to an instrument
11) _____ believe that prevention of socially undesirable behavior is the only proper
purpose of criminal penalties.
a.utilitarians
b.ethical pragmatists
c.virtue ethicists
d.deontologists
12) a broker operating under a(n) _____ contract is entitled to a commission only if he
was the first to find a ready, willing, and able buyer.
a.open listing
b.exclusive right to sell
c.exclusive agency listing
d.exclusive right
13) as per the test laid down by the supreme court (in united states v. chiarella), the
definition of insiders includes not only officers and directors of the company but also
anyone who has been entrusted with corporate information for a corporate purpose.
14) proof of _____ is often offered as evidence of a sellers anticompetitive intent when
proving a primary level violation of the robinson-patman act.
a.functional discounts
b.predatory pricing
c.quantity discounts
d.accumulation pricing
15) the national priority list was drawn by the epa with reference to which of the
following statutes?
a.comprehensive environmental response, compensation, and liability act
b.resource conservation and recovery act
c.federal water pollution control act
d.toxic substances control act
16) promoters of a youth-oriented magazine publishing business substantially complied
with each of the mandatory conditions precedent to the incorporation of the business,
but they forgot to include the incorporators addresses in the articles of incorporation. as
a result, a(n) _____ corporation was formed.
a.de jure
b.de facto
c.s
d.estoppel
17) jargons company is a well-known and seasoned public issuer of securities. it is
going to file a registration statement with the sec on february 1, 2012 for a new security
offering. rule 163 of the 1933 act will allow it to use a _____ in january 2012.
a.final prospectus
b.communications not deemed a prospectus
c.free-writing prospectus
d.preliminary prospectus
18) which of the following will lead to a violation of the ftc act section 5s prohibition of
unfair acts or practices?
a.an advertisement that causes emotional distress.
b.a sellers use of high-pressure sales tactics on vulnerable consumers.
c.an advertisement that is perceived to be offensive in nature.
d.a sellers failure to give a consumer complex technical data about a product.
19) which of the following is a uniform state law designed to remove barriers to
electronic commerce by validating and effectuating electronic records and signatures?
a.the uniform electronic transactions act (ueta)
b.the electronic signatures in global and national commerce act (e-sign)
c.the electronic communications privacy act (ecpa)
d.the graham-leach-bliley act (glb)
20) cw, inc. publishes consumer watchdog, a magazine whose articles consist of the
writers personal experiences with and reactions to a variety of products. in the june
1997 issue of consumer watchdog, a review included this statement: fungus co.s fungo
brand athletes foot powder doesnt cut the mustard in comparison to most athletes foot
powders on the market--and ive tried them all, sports fans. fungo fails to attack athletes
foot with enough force because the product doesnt contain af88, the active ingredient in
any decent athletes foot powder. in fact, fungo contains as much af88 as any other
athletes foot powder on the market. fungus co. has filed suit against the writer and cw
on the theory that the above statements violated section 43(a) of the lanham act. on
these facts, should fungus win the section 43(a) case? why or why not?
21) poxabogue associates, a partnership, is dissociated by the retirement of a partner.
the business is continued by the remaining partners and a new partner, enrica. what is
enricas liability to creditors for partnership obligations that arose before she became a
partner?
a.enrica is liable to the extent of partnership assets.
b.enrica is liable only if she agrees to assume the retired partners liability.
c.enrica is fully liable.
d.enrica has no liability.
22) a plaintiff wishes to recover damages from the issuer for losses resulting from
material misstatements in a securities registration statement. in order to be successful
under section 11 of the 1933 act, one of the elements the plaintiff must prove is that the:
a.plaintiff was in privity of contract with the issuer.
b.plaintiff relied on the misstatement or omission in the registration statement.
c.issuer acted negligently.
d.issuer is in one of the classes of persons liable under section 11.
23) ann wants to download the adobe acrobat software from the internet. prior to
downloading, a standardized online contract appears on the screen that requires her to
click on an icon indicating agreement, before she can proceed in the program. such
contracts are called:
a.clickwrap contracts.
b.shrinkwrap contracts.
c.click-off contracts.
d.unenforceable contracts.
24) what is a gift of real property called?
a.residuary
b.estate
c.bequest
d.devise
25) which of the following is true about continuation statements?
a.a continuation statement must be filled after the lapse of the five year period of the
financing statement.
b.the continuation statement must be signed by the secured party.
c.the effectiveness of the financing statement has nothing to do with the continuation
statement.
d.continuation statements may be filed just once.
26) leviathan corp. has filed a civil racketeer influenced and corrupt organizations act
(rico) lawsuit against nbs bros., an accounting firm. nbs has asked the court to dismiss
the case for two reasons: first, leviathan did not allege, and cannot prove, that nbs is
connected in any way with organized crime, as that term is customarily used; and
second, leviathan did not allege, and cannot prove, that nbs was criminally convicted of
a predicate offense. should nbs succeed with these arguments? explain your reasoning.
27) press publishers sold 100 copies of a new hardback book entitled business law to
boardwalk books. the contract between press publisher and boardwalk books provides,
in relevant part, that boardwalk may return to press any unused copies of the book
within six months. during the six-month period, boardwalk sold only five copies of
these books. however, twenty copies were damaged from sitting on the bookshelf for
six months and having customers rip pages and spill coffee on them. boardwalk wants
to return all ninety-five copies to press. discuss.
