1) If no children or grandchildren survive a decedent who dies without a will, a
surviving spouse receives the entire estate.
2) Fungible goods are goods that are different naturally, by agreement, or by trade
usage.
3) In a share exchange, some or all of the shares of one corporation are exchanged for
the shares of another, and both corporations cease to exist.
4) Employers are not required to modify their job-application and selection process so
that those with disabilities can compete for jobs with those who do not have disabilities.
5) Water-quality standards are set by the Environmental Protection Agency.
6) Federal law establishes the specific procedures for a share exchange.
7) To obtain a search warrant, law enforcement officers must convince a judge that they
have reasonable grounds to believe a search will reveal evidence of a specific illegality.
8) When a customer makes a deposit, the customer becomes a creditor, and the bank a
debtor, for the amount deposited.
9) When a buyer has breached a sales contract, and the goods are in his or her
possession, the seller can sue to recover the purchase price, but not incidental damages.
10) Those who knowingly violate the Clean Air Act may be subject to criminal liability.
11) In a merger, the surviving corporation inherits the disappearing corporation’s rights.
12) It is easy to prove that an intoxicated person’s judgment was so severely impaired
that he or she could not comprehend the legal consequences of entering into a contract.
13) Federal agency regulations take precedence over conflicting state agency
regulations.
14) Recent advances have fostered the growth of a relatively new industry to profit
from crime. Statistics show that criminals have learned it is easier, less risky, and more
profitable to
a.rob banks using traditional means.
b.steal via the Internet.
c.engage in legitimate activities such as stock trading via the Internet.
d.sell their stories to movie, music, and TV producers or video-game makers.
15) Miranda delivers her bridesmaid’s dress to Nina for alterations. Nina promises that
the dress will be ready within five business days. Miranda agrees to pay the charge
when she picks up the dress. This is
a.an implied bailment.
b.an involuntary bailment.
c.an express bailment.
d.not a bailment.
16) Arnold enters a Bunco tournament hosted by Bunco Players Association (BPA).
During the event, Arnold signs an agreement that stipulates BPA will pay all of the
winner€s fees and expenses to attend the Bunco World Games, but if the winner does
not attend, he or she agrees to repay the funds. Arnold wins and BPA pays his expenses,
but he does not go to the World Games. In BPA€s suit to recover the expended funds, a
court is most likely to rule that the agreement is
a.an invalid modification of the tournament contract between Arnold and BPA.
b.binding to the extent that the parties ‘split the difference.”
c.not binding because it was signed “during the event.”
d.binding and Arnold must repay the funds.
17) The functions of the National Transportation Safety Board, like those of other
federal administrative agencies, include
a.adjudication.
c.declaration.
b.enunciation.
d.pronunciation.
18) Fact Pattern 28-1B
Dana takes her car to Efficient Auto Repair Service, which repairs the car and bills
Dana for $500. She writes out a check drawn on First Choice Bank, but later, believing
that Efficient Auto did not repair the car properly, issues a stop-payment order.
Refer to Fact Pattern 28-1B. If First Choice pays the check, the bank
a.can sue Dana for a wrongful stop-payment order.
b.can sue Efficient Auto for breach of contract.
c.is liable to Efficient Auto for the time and trouble to return the payment.
d.is liable for Dana’s loss due to the wrongful payment.
19) Produce Packaging Company promises its employees a 10 percent raise at the end
of the year if productivity has increased and management feels the raise is warranted.
Produce Packaging must
a.do nothing.
b.give the employees a 10 percent raise only at the end of the year.
c.give the employees a 10 percent raise only if productivity increases.
d.give the employees a 10 percent raise under any circumstances.
20) A court awards a judgment to Loan Collection Agency, who is the creditor, against
Margret, who is the debtor. After the judgment, the creditor requests a court order to
seize Margret’s property to ensure that the judgment will be collectible. This is
a.a judicial lien.
b.a writ of attachment.
c.a writ of execution.
d.aviolation of most state laws.
21) Situations in which employers face ethical issues with respect to social media
platforms include
a.conducting an Internet search to discover what a job candidate has posted.
b.judging a job candidate based on what he or she does outside the work environment.
c.rejecting a job candidate if he or she does not participate in any social media.
d.all of the choices.
22) The U.S. Bankruptcy Court for the District of Arizona uses online live chatting as
part of a strategic initiative to educate the public about bankruptcy. Those who have
used the live chat services include
a.individuals interested in filing for bankruptcy without an attorney.
b.paralegals.
c.real estate lawyers who have expanded into bankruptcy law.
d.all of the choices.
23) Discount Mart Corporation contracts with companies in developing nations to
produce goods, because the wage rates in those nations are significantly lower than
those in the United States. Discount Mart takes steps to avoid bad publicity by
monitoring its suppliers’ workplaces to make sure that the employees are not mistreated.
Discount Mart is
a.acting unethically in its pursuit of good publicity.
b.acting unethically in its pursuit of profits.
c.acting unethically by monitoring its suppliers.
d.not acting unethically.
24) When Maja, an attorney and a U.S. citizen, crosses the border between the United
States and Canada, she expects the U.S. Department of Homeland Security to search
her laptop. To avoid disclosing confidential client data during the search, Maja could
a.keep client files on a device that she does not take abroad.
b.carry client files abroad only in hard copy.
c.refuse to consent to a border search of her laptop.
d.assert her right to be free from unwarranted government intrusion.
25) A failure of the U.S. Drug Enforcement Administration to comply with a request
under the Freedom of Information Act (FOIA) may be challenged in
a.a federal district court.
b.a hearing before the U.S. Freedom of Information Agency.
c.a meeting with Congress€s FOIA subcommittee.
d.a special conference with the president of the United States.
26) Martha has a checking account with Homeplace Bank. Martha signs a check
“payable to Phillipa” drawn on Martha’s account. Homeplace Bank is
a.the payer.
b.the drawee.
c.the drawer.
d.the payee.
27) Grande Floors, Inc., and Home Decor Stores enter into a contract for a sale of
carpeting. Grande Floors, a merchant who deals in goods of the kind sold, makes
express warranties in connection with the sale. Under the UCC, at the time a contract is
formed, an express warranty can be disclaimed or modified
a.by clear, conspicuous language called to the buyer’s attention.
b.by implied affirmations of fact relating to the goods.
c.in any way that the seller sees fit for the ordinary purpose.
d.in no way.
28) Drainage & Irrigation Equipment, Inc., contracts to sell its assets to Earth & Sky
Aquatic Corporation. Before either party has performed, rescission of this contract
requires
a.a mutual agreement to rescind.
b.an accord and satisfaction.
c.a novation.
d.a settlement agreement.
29) Contracting parties cannot opt out of the terms of the UETA.
30) Rosalind, a seventeen-year-old, signs a contract to sell her car to Street Fleet Used
Cars. The next day, Rosalind tells Street Fleet that she’s decided not to sell the car.
Rosalind is liable to Street Fleet for
a.the cost of a car of comparable value.
b.the value of her performance under the contract.
c.the amount of its profit on the deal.
d.nothing.
31) Satin, Silk & Swimwear, a women’s clothing store, employs female attendants who
assist customers in the dressing rooms. Toribio, a forty-one-year-old male, applies for
an attendant’s job, but is not hired. In Toribio’s suit against Satin, Silk & Swimwear for
employment discrimination under the Civil Rights Act of 1964, the store has
a.no defense.
b.a bona fide occupational qualification defense.
c.a business necessity defense.
d.an affirmative action defense.
32) The management of Sweet Soft Drinks Corporation, a U.S. firm, wants to expand
into foreign investment and employment markets. They are considering either opening
their own production facility in a foreign country or entering into a licensing agreement
with a foreign firm. What are the advantages and disadvantages of each of these courses
of action?
33) Under the UCC, good faith means honesty in fact and the observance of reasonable
commercial standards of fair dealing in the trade.
34) Manufacturers must use due care in inspecting and testing any purchased
components used in a product.
35) The first person to invent a product obtains the patent rights rather than the first
person to file an application for a patent.
36) For a check, a “reasonable time” is ninety days after the date of the check.
37) Qiara steals a check from Reese, forges his signature, and transfers the check to
Salon Beauteous, a beauty and barber salon, for value. Unaware that the signature is not
Reese’s, Salon Beauteous presents the check to Town & Country Bank, the drawee,
which cashes the check. Reese discovers the forgery and insists that his bank recredit
his account. Can the bank refuse? If not, from whom can the bank recover?
38) Procedural law does not have a significant impact on a person’s ability to pursue a
legal claim.
39) In May, Zach agrees to work for Affordable Plumbing Supplies Company at $800
per week for a year beginning June The following January, Budget Pipes & Fittings,
Inc., offers Zach the same work at $900 per week. Zach tells Affordable Plumbing
about the offer. Affordable Plumbing offers to enter into a new contract with Zach at
$875 per week. If Zach agrees, is the new Affordable Plumbing contract enforceable?
Why or why not?
40) A statute or court decision that makes an offer illegal automatically terminates the
offer