A judicial lien against a partner’s transferable interest in a partnership is known as a(n):
a. legal aggregate.
b. delegation of assets.
c. charging order.
d. assignment.
Tender can be made any time of the day or night when the seller feels like delivering
the goods.
a. True
b. False
Ron owes Lloyd $500 due March Lloyd assigns his right to the money to Lou, but
neither Lloyd nor Lou notifies Ron. On March 1, Ron pays Lloyd the $500. Ron is not
discharged from his obligation, but is liable to Lou for the money.
a. True
b. False
Which one of the following is NOT true of a suit brought under criminal law?
a. It must be brought by the government.
b. It is brought on the ground of public policy.
c. Proof of guilt must be “by a preponderance of the evidence.”
d. Conviction may result in imprisonment.
Mary allows the seller, Baymore Co., four weeks to repair the defects in her kitchen set.
They have tried, but have not done a good job. She may revoke her acceptance as long
as she:
a. notifies Baymore of the revocation.
b. does not use the table and chairs.
c. could not discover the defects easily.
d. inspected the goods herself.
Restitution is available as an alternative remedy for a party’s repudiation of the contract.
a. True
b. False
Under Article 3 of the Code, collecting banks give to a transferee the same basic
warranties as those given by other parties who transfer commercial paper.
a. True
b. False
A contract in which both parties exchange promises is a:
a. voidable contract.
b. bilateral contract.
c. unilateral contract.
d. quasi contract.
Where both words and numerals are used to describe the amount payable, the numerals
will be used to resolve any differences.
a. True
b. False
A form of time draft known as a trade acceptance is used as a credit device in
commercial transactions.
a. True
b. False
The general rule is that an assignee stands in the shoes of the assignor. He acquires the
rights of the assignor but no new or additional rights.
a. True
b. False
Under the Statutory Close Corporation Supplement to the MBCA, a close corporation
may operate without a board of directors.
a. True
b. False
The Supreme Court, in Jacksonv.MetropolitanEdisonCo., held that a privately owned
electric utility was subject to the Due Process Clause because operating the utility was
‘state action” since the State had granted the utility a monopoly.
a. True
b. False
Jan Arthur writes a $200 check to Bruce Nole who indorses it “Bruce Nole.” Bruce
gives the check to Anne Tate who indorses it “Without Recourse. Anne Tate.” Anne
sends the check to Joe Black, MD to pay her medical bill. If the bank refuses to honor
the check, Black:
a. can only collect from Jan Arthur.
b. can only collect from Jan Arthur or Bruce Nole.
c. can collect from the drawer or any indorser whose name appears on the check.
d. has no recourse.
Under most circumstances, a creditor who files a completed financing statement can be
assured that the security interest is perfected.
a. True
b. False
Buying a negotiable instrument at a discounted price demonstrates lack of good faith.
a. True
b. False
A gift causamortisis contingent upon:
a. the donee’s surviving the donor.
b. the donor’s surviving the donee.
c. the donee’s death as anticipated.
d. the donee’s not revoking the gift prior to the donee’s death.
June purchases $8,000 of goods from Will on thirty days’ credit, and Will assigns the
account to Mark. If June finds
the goods defective and only worth $6,000:
a. she has no defense against full payment since the account was assigned.
b. she only needs to pay Mark $6,000 if Mark had notified her of the assignment.
c. Mark is entitled to the full $8,000 since he acquires rights greater than those of Will,
who assigned the contractual rights to payment.
d. she must pay $6,000 directly to Will regardless of whether Mark notified her of the
assignment.
A modification of a preexisting contract occurs when the parties agree to change one or
more of its terms and, under the common law, must be supported by mutual
consideration to be enforceable.
a. True
b. False
James offers to sell four acres of land to Jennifer for $8,000 and further offers to keep
the offer open for one month if Jennifer will pay him $100 for the privilege. Jennifer
pays James $100. Which statement describes the payment of
$100?
a. An implied in fact contract has been formed.
b. A unilateral contract has been formed.
c. This is a formal contract.
d. This is an option contract.
What standard does a court use in reviewing the factual determinations of an
administrative agency?
a. Whether the adjudication was arbitrary and capricious.
b. Whether the conclusions reached are supported by substantial evidence.
c. Whether the agency has conducted an adjudication with inadequate fact-finding
procedures or whether issues that were not properly before the agency were decided.
d. Any one of these, depending on the particular situation.
INM Corporation is in the business of developing genetically engineered
pharmaceutical products. It has developed a new genetically engineered microorganism
that it would like to protect from unauthorized use by others. INM may patent the
microorganism.
a. True
b. False
What Article of the UCC governs electronic funds transfers?
a. Article 3
b. Article 4
c. Article 4A
d. Article 5
A contract by which of the following is void?
a. A fourteen-year-old girl.
b. A thirty-six-year-old man under a court-ordered guardianship for mental
incompetency.
c. A thirty-year-old woman who, because of intoxication, is unable to understand the
nature and consequences of signing the contract.
d. A twenty-five-year-old woman who is unable to understand the nature and effect of
signing a contract because of a mental illness.
Under the majority view, if a clause in a lease says the tenant cannot sublet, he can still
assign the lease.
a. True
b. False
Vladimir entered into a contract to buy Daniel’s collection of rare stamps. Vladimir
mailed payment of $10,000 for the stamps to Daniel, but now Daniel tells Vladimir, “I’ll
never part with these stamps.” Are the remedies of restitution and specific performance
available to Vladimir?
a. Restitution:Yes; SpecificPerformance:Yes
b. Restitution:Yes; SpecificPerformance:No
c. Restitution:No; SpecificPerformance:Yes
d. Restitution:No; SpecificPerformance:No
The definition of the doctrine of ethical relativism includes:
a. that when any two individuals differ regarding the morality of an issue or action, they
are both correct because morality is relative.
b. the proposition that a good or moral act is one that results in “the greatest good for
the greatest number.”
c. the notion that cost-benefit analysis is relative to making ethical decisions.
d. that, without any further evaluation, the ultimate judgment of the correctness of an
action relates to pronouncements of a central authority.
The use of the qualifying word(s)___credit of the person using the language.
a. “accepted”
b. “certified”
c. “without recourse”
d. “insufficient funds”
Regulation of gambling is solely under federal jurisdiction, through Congressional
legislation and U.S. court enforcement.
a. True
b. False
Bradley buys a television set that turns out to be stolen. He can sue the seller for breach
of warranty.
a. True
b. False
A transfer of debtor’s property includes:
a. retention of title as a security interest.
b. only a voluntary disposition of property.
c. only a direct interest in property.
d. only modes of disposing of property, or an interest therein, specified in the
Bankruptcy Code.
A defendant will be liable for all harm that can be traced back to the defendant’s
negligence.
a. True
b. False
Consideration is required in order to have a valid assignment.
a. True
b. False