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1) the doctrine of standing to sue requires that, in order to be able to mount a civil suit,
a plaintiff must have some direct and considerable stake in the outcome of the suit.
2) a patent granted on september 2, 1997 will be valid for 17 years from that date unless
the patent was for an ornamental design.
3) common carriers are not permitted to limit their liability for damage to bailed goods.
4) the electronic funds transfer act governs check conversion transactions.
5) in order to be liable under the implied warranty of merchantability, a seller must be a
merchant.
6) shareholders have a right of full participation in board of directors meetings.
7) the doctrine of res ipsa loquitur means the thing speaks for others.
8) a person who has leased a personal property has ownership rights and can also
subsequently sell the property to a third person.
9) apparent authority protects third parties who reasonably rely on the principals
manifestations that the agent has authority.
10) patent infringement may occur even if the defendants use did not involve a literal
reproduction of the patented item.
11) real property cannot be turned into personal property.
12) once firms have attained monopoly power, only then can they be held for violation
of section 2 of the sherman act.
13) revised article 3 provides that the drawer of a cashiers check has the same
obligation as the issuer of a note.
14) generally speaking, statements made during judicial proceedings are absolutely
privileged and, therefore, shield against defamation liability.
15) ordinarily, an item is not considered to be a necessary if a parent or guardian
already supplies the minor with similar items.
16) the transfer of a right under a contract is called a(n):
a.assignment.
b.delegation.
c.affidavit.
d.bilateral contract.
17) pam enters into a contract with jack to sell him 300 bales of hay. the bushels are
kept in her warehouse, which is about 100 miles away from her place of business. the
contract makes no express mention of the place of delivery. the place of delivery in such
cases is:
a.pams place of business.
b.pams house.
c.pams warehouse.
d.jacks house.
18) generally courts interpret ambiguities in the insurance clauses against the:
a.insurer.
b.insured.
c.owner.
d.lesser.
19) section 5 of the 1933 act permits the securities to be offered but not sold during the
_____ period.
a.pre-filing
b.quiet
c.waiting
d.post-effective
20) which of the following statements is true regarding a guarantor?
a.in order to be a guarantor, a person must enter into a deed of trust with the principal
debtor.
b.a guarantor is primarily liable for the debt along with the principal debtor.
c.generally, a guarantors promise must be made in writing to be enforceable under the
statute of frauds.
d.a guarantor joins the principal debtor in making a promise.
21) which of the following is true about possession of collateral by secured party as
public notice?
a.change of possession is a convenient way for perfecting most security interests in
consumer goods.
b.possession of collateral by the creditor is rarely executed to perfect a security interest
in chattel paper and negotiable documents of title.
c.possession is a possible way of perfecting a security interest in inventory which is
achieved through a field warehousing arrangement.
d.possession by the creditor is a practicable way of perfecting a security interest in
equipment or farm products.
22) chicago school theorists argue that antitrust policys primary thrust should feature:
a.prointraindustry competition efforts.
b.proregulation efforts.
c.anticoncentration efforts.
d.anticonspiracy efforts.
23) which of the following characterizes a trademark?
a.it includes generic terms.
b.it is easier to transfer trademark rights compared to patent rights.
c.federal registration of a trademark lasts for 10 years.
d.descriptive marks are protected on the basis of their primary meaning.
24) when a customer deposits a check to her account without an indorsement, then the
bank:
a.puts the sign of the manager under the typed name of the customer.
b.signs the customers name.
c.stamps the name of the bank on the check to cover for the customers signature.
d.stamps on it that it was deposited by the customer.
25) a personal representative of an estate would breach fiduciary duties if the personal
representative:
a.combined personal funds with funds of the estate so that both could purchase treasury
bills.
b.represented the estate in a lawsuit brought against it by a disgruntled relative of the
decedent.
c.distributed property in satisfaction of the decedents debts.
d.engaged a non-cpa to prepare the records for the estates final accounting.
26) under section 1 of the sherman act, a corporations employees can be guilty of a
conspiracy provided they conspire with:
a.either the board of directors or the senior management of the corporation.
b.the employees of a wholly owned subsidiary firm.
c.the employees of an independent, competitor firm.
d.the employees of a subsidiary in which the parent has a controlling interest.
27) anderson incorporated his new company, pearl inc., in the business of
manufacturing rubber. after some years, he opened his own subsidiary rubber
manufacturing company. the new subsidiary company is a success. meanwhile, the
workers of pearl inc., claimed that payment of bonus is due and they are demanding the
same from the subsidiary company. in this case, are both pearl inc., and its subsidiary
liable?
a.yes, they are liable because it is provided under corporation law.
b.yes, they are liable because both are the same entity in the eyes of the law.
c.no, they are not liable because it is not a subsidiary of pearl inc.
d.no, they are not liable because a subsidiary is not liable for parents debts as provided
under the law.
28) which of the following situations will justify the inference that a price-fixing
conspiracy exists?
a.the defendants parallel pricing behavior stemmed from an implied agreement.
b.independent business decisions by the defendant led to price parallelism.
c.the defendant was unwilling to relinquish market share by engaging in price
competition.
d.the evidence only indicates pure conscious price parallelism by the defendant.
29) russell, age 45, has been suffering from mental impairment for a long time. he signs
a contract to sell his villa for $1 million to andre. when russells wife katie, who is also
his appointed (by the court) guardian, gets to know of the deal, she wants to ends the
contract. which of the following statements is true?
a.andre cannot claim the villa until he has paid for it.
b.russell has the right to enter into such a contract.
c.katie need not worry because the contract is void.
d.the court will give primary preference to russells opinion.
30) carl gave his car to be serviced and washed at harolds carwash. unknown to either
of them, danny replaces the engine in the car with a new four-speed transmission. he
now claims that the car belongs to him. which of the following is true?
a.carl remains the actual owner, as he always was.
b.danny has rights over the car since he improved it.
c.the car belongs to harold because he is the owner of the carwash.
d.danny can sue both harold and carl if they do not pay him.
31) partners of a partnership:
a.are not liable for all the obligations of their partnership.
b.are entitled to income of the partnership, which must be reported on their individual
federal income tax returns.
c.are not permitted to deduct partnership losses on their individual federal income tax
returns.
d.can create a partnership only by complying with a statute.
32) which of the following regulates the manufacture and use of pesticides?
a.fifra
b.tsca
c.rcra
d.cercla
33) when tammy rented an apartment, she and the landlord agreed that she would pay
rent on the first of every month. however, they did not agree on the duration of the
lease. under these circumstances, what sort of tenancy was created?
a.a tenancy at will
b.a tenancy at sufferance
c.a periodic tenancy
d.a fee simple tenancy
