A party who has waived rights to a portion of the contract not yet performed may
retract the waiver.
Answer:
The party asserting the work product privilege bears the burden of establishing that the
documents he seeks to protect were prepared in anticipation of litigation.
Answer:
The privity doctrine does not limit recovery from a suit to those with a direct
contractual relationship to the accountant.
Answer:
A person has the capacity to act as an agent only if he/she has the legal capacity to
contract.
Answer:
“Lemon laws” apply only to car manufacturers.
Answer:
An agent may deposit funds of the principal in her personal account.
Answer:
Under the Statute of Frauds, contracts for the transfer of ownership of land do not need
to be in writing.
Answer:
Preferred stock and common stock are both debt securities.
Answer:
With preferred stocks, the right to vote is usually granted to a shareholder only in the
event that dividends due are not paid.
Answer:
If the parties used a form contract, or the contract is partly printed and partly written,
the printed terms control the written terms if the two conflict.
Answer:
The TILA fixes interest rates.
Answer:
Dividends on noncumulative preferred stock need to be paid later if they are not earned
and paid in the year due.
Answer:
The direct copyright infringement theory of recovery has been used effectively against
suppliers of peer-to-peer file sharing software that has been used to download DVDs
from the Internet.
Answer:
By indorsing an instrument, a person incurs an obligation to pay it if the person
primarily liable on it fails to pay it.
Answer:
A shareholder can sue a corporation if it did not pay a preferred dividend and can also
recover the expenses in bringing suit.
Answer:
An accountant who shows a reckless disregard for the truth may be said to be acting
with scienter.
Answer:
An indorsing transferor makes all five transfer warranties to his/her immediate
transferee.
Answer:
The tort of interference with contract:
A. does not protect the sanctity of private contractual relationships.
B. does not apply to a person who intentionally induces a person to breach a contract
with another.
C. applies to a person who intentionally prevents performance of another person’s
contract.
D. justifies inducing a breach of contract in most cases.
Answer:
Under the common law, minors:
A. are entitled to the return of their property given as consideration only upon attaining
majority.
B. are entitled to the return of their property given as consideration even if they have
been ratified.
C. are entitled to the return of their property given as consideration, even if that
property is possessed by a third party at the time of disaffirmation.
D. are not entitled to the return of their property given as consideration.
Answer:
A quasi contract is:
A. a contract that has been fully performed.
B. a contract where terms are stated orally only.
C. contract like duties imposed by the court to prevent unjust enrichment.
D. an agreement which contains all but one of the basic elements needed to form an
enforceable contract.
Answer:
Fixtures are items of personal property which may be treated as a part of real property
because of:
A. their use to the landlord.
B. their attachment to that real property.
C. the landlord’s security interest in them.
D. the commercial use of the fixture to that property.
Answer:
Rocky, who was voted the most valuable player of NYU’s basketball team, can:
A. delegate his duties to another player.
B. cannot delegate due to public policy.
C. cannot delegate as they involved his personal skill.
D. assign his duties to another player.
Answer:
If the creditor has possession of the collateral, the security agreement:
A. should specify the collateral.
B. need not be in writing.
C. need not specify the collateral.
D. should be in writing.
Answer:
Shoddy Roofing Company agrees to do the roofing on a building owned by Tacky
Construction Company for $50,000. One week after Shoddy finishes work, over 20% of
the shingles fall off due to improper installation. Tacky promises Shoddy an additional
$10,000 to reinstall the fallen shingles, and Shoddy does so. Then Tacky refuses to pay
Shoddy more than $50,000 for the work. Identify the TRUE statement with regard to
this situation.
A. Shoddy is not entitled to any more than $50,000 for its work.
B. Tacky owes Shoddy the additional $10,000.
C. Shoddy would still be entitled only to $50,000 if the shingles had fallen off due to an
unforeseeable earthquake hitting the building.
D. Shoddy would still be entitled only to $50,000 if the parties had voluntarily
cancelled their original contract and entered a new one for $60,000.
Answer:
If property covered by a valued policy is totally destroyed:
A. the insured can recover the face amount of the policy only if it does not exceed the
fair market value of the building.
B. the insured can recover only the fair market value of the building.
C. the insured can recover the face amount of the policy regardless of the fair market
value of the building.
D. the insured can recover the fair market value of the property at the time it was
destroyed, up to the limits stated in the policy.
Answer:
Jim and Terry were married and had three children. Jim and Terry owned their home
together as tenants in the entirety. If Jim dies intestate, under the laws of most states,
who owns the home?
A. Terry owns one-half and the children each own a one-sixth share of the home.
B. Terry and each of the children own one-fourth share of the home.
C. Each of the children own one-third of the home.
D. Terry owns the home by right of survivorship.
Answer:
Under the doctrine of cy pres, when property is given in trust to be applied to a
particular charitable purpose that becomes impossible, impracticable, or illegal to carry
out and the settler has not specifically provided for a substitute beneficiary:
A. the trust will automatically fail.
B. the court will direct the application of the property to some charitable purpose that
falls within the settlor’s general charitable intention.
C. the court will direct that the property be directed to the state for use in a
socially-responsible and “reasonably prudent” manner.
D. the original beneficiaries can use the property for a charitable purpose.
Answer:
Which of the following is an example of scienter?
A. A party to a contract disclosing to the other party all the material facts he/she knows
about the subject of the contract.
B. Plaintiff knowingly making a misstatement to a defendant who was likely to rely on
it.
C. Defendant admitting that he made a false statement with the intent to deceive.
D. Plaintiff taking action to reveal a misstatement.
Answer:
The responsible corporate officer doctrine:
A. directs that corporate officials and agents may be held liable for crimes they aid and
abet.
B. states that officials cannot be tried for homicide and related crimes.
C. says that corporate officials have no liability if they have no knowledge of the
activities in question.
D. directs that corporate officials may be tried only for crimes that they personally
commit.
Answer:
Max has the right to have his neighbor refrain from erecting a building on his property
that would cut off light and air from his building. This is an example of a(n):
A. necessity.
B. negative easement.
C. adverse possession.
D. affirmative easement.
Answer:
If an instrument is nonnegotiable:
A. the Code controls the rights, and the general rules of property law control liabilities
of the parties involved.
B. the general rules of contract law control the rights and liabilities of the parties
involved.
C. the Code controls the rights, and the general rules of comparative law control the
liabilities of the parties involved.
D. the general rules of tort law control the rights and liabilities of the parties involved.
Answer:
If Lily takes her diamond ring to Steve’s Jewelers for routine cleaning, and Steve sells
the ring to Evan who is unaware that the ring is Lily’s:
A. Lily can recover the ring from Evan.
B. Lily can sue Steve for conversion, but cannot recover the ring from Evan because he
was a buyer in the ordinary course of business.
C. Lily can recover the ring under the UCC’s ownership principles.
D. Lily cannot get the ring as Evan has good title to it.
Answer:
Which of the following statements is TRUE with regard to the possession of a wild
animal?
A. The first person to take possession of a wild animal acquires its ownership rights.
B. Personal ownership rights are never given to individuals for wild animals.
C. Wild animals caught in traps are usually considered to be the property of the first
person who finds the animal.
D. To take possession of a wild animal found in a forest, a person must have the
ownership rights of the property in which the animal was found.
Answer:
A treaty becomes “the supreme law of the land” when:
A. it lends predictability to decisional law by relying on prior decisions.
B. it is an agreement made by the president with a foreign government and two-thirds
of the Senate ratifies it.
C. it establishes rules that govern certain kinds of activities, such as the use of
automobiles on highways.
D. it adds details to the government framework by establishing a regulatory agency.
Answer:
In a Rule 10b-5 case:
A. selective disclosure by a defendant doesn’t make him liable for omission of material
facts.
B. the plaintiff must prove that the defendant acted with the intent to deceive,
manipulate, or defraud.
C. negligence on the part of the defendant is enough to make the defendant liable.
D. the plaintiff is generally not required to prove that she relied on the defendant’s false
statement.
Answer:
When the finder of a lost property knows who the owner is and refuses to return it to
him/her:
A. the finder is liable to revest the title of the property back to the owner.
B. the finder will not be found guilty of conversion.
C. the finder will be found guilty of accession.
D. the finder is liable to pay the owner the fair value of the property.
Answer:
What are the two types of securities that must be registered under the Securities
Exchange Act of 1934?
Answer:
Explain the Fair Housing Act. Under what circumstances, can people be exempted
from this act?
Answer:
Describe the provisions against insider trading under Rule 10b-5 of the Securities
Exchange Act of 1934.
Answer:
Explain how a security interest is created.
Answer:
PC Corp. entered into a contract with Easy University to supply the school with 500
PCs for use in its new computer facility. A week before the PCs were to be delivered,
Easy University called PC Corp. and said that it would not go through with the
purchase. Is PC Corp. obligated to deliver the PCs as required by the contract? Why or
why not?
Answer:
Under the UCC, list five remedies available to a buyer when the seller has breached a
contract.
Answer:
Weddings R Us, an event management company, brought suit against Smith to recover
the contracted price for the performance of a full wedding, including the providing of a
three-layer wedding cake. Should the court apply Article 2 of the UCC to this contract?
Answer:
Spudz, an Iowa corporation, agreed to sell Bob two carloads of potatoes at “$5 per
sack, FOB Iowa shipping point.” Spudz had the potatoes put aboard the railroad cars;
however, it did not have floor racks used in the cars under the potatoes as is customary
during winter months. As a result, there was no warm air circulating and the potatoes
were frozen while in transit. Spudz claims that its obligations ended with the delivery to
the carrier and that the risk of loss was on Bob. What argument would you make for
Bob?
Answer:
Describe the responsibilities of personal representative in the administration of an
estate.
Answer: