Life insurance contracts give the insured the right to change the beneficiary only with
the beneficiary’s consent.
Answer:
A contract of adhesion is not in violation of public policy.
Answer:
A warranty is an implied condition of an insurance contract.
Answer:
Exemptions are available to both individual debtors as well as corporations.
Answer:
A seller may create an express warranty by merely stating an opinion.
Answer:
A constructive trust is created by operation of law to avoid fraud.
Answer:
After breach of contract by a buyer, if a seller auctions the goods and makes profit, he
is not liable to give the profit to the buyer.
Answer:
Negligent wrongdoers are not necessarily liable for all direct harm resulting from their
negligence.
Answer:
The main thing that courts look for in deciding whether the parties entered into a
contract is a “meeting of the minds” between the parties.
Answer:
Parties may extend the length of time in which a lawsuit can be filed for breach of sales
contract to six years.
Answer:
If a buyer has a basis for rejecting a delivery of goods, the buyer must act within a
reasonable time, but does not need to give the seller notice of rejection.
Answer:
When the government restricts the exercise of a fundamental right, like speech, courts
evaluate the restriction using rational basis analysis.
Answer:
John agreed to act as surety for a loan taken by his son, Frank, from the Third National
Bank. The terms of the loan provided that Frank would pay the loan off in 12 monthly
installments at 10%. If Frank renegotiates the terms of the loan with the bank and is
now obligated to pay the loan off in 12 monthly installments at 9%, which of the
following statements is TRUE?
A. Renegotiation of the note by Frank does not relieve John of liability as surety
because the new terms are more favorable than the original terms.
B. John must notify the bank in writing that he no longer wishes to act as surety in order
to avoid liability under the new terms.
C. John must notify Frank in writing that he no longer wishes to act as surety in order to
avoid liability under the new terms.
D. John is no longer obligated because his responsibilities as a surety cannot be
changed without his consent.
Answer:
If the proceeds of sale of collateral are not sufficient to satisfy the debt, then the
creditor is usually entitled to a:
A. future advance.
B. deficiency judgment.
C. fixture filing.
D. warehousing arrangement.
Answer:
A holder in due course may discharge the liability of the parties to the instrument by:
A. publishing notice.
B. canceling it.
C. repudiating it.
D. paying for it even if it is a stolen one.
Answer:
_____ includes storage charges and sales commissions.
A. Consequential damages
B. Incidental damages
C. Liquidated damages
D. Unconscionable damages
Answer:
Which of the following insurance contracts is enforceable?
A. An insurance policy taken out by a minor.
B. Life insurance contracts in writing.
C. A contract where either party to a contract has the capacity to contract.
D. Breach of warranty by the insured.
Answer:
Harry and Rebecca are both 63 years old and have a flourishing business. They decide
to purchase a beach house and seek a 15-year mortgage. In this situation:
A. the mortgage company may deny them credit based on their age and possibility of
loss of income at retirement.
B. the mortgage company may deny them credit based on the Equal Credit Opportunity
Act because their application, when compared to more youthful applicants, is not
“equal”.
C. the mortgage company cannot deny them credit, based on the Equal Credit
Opportunity Act.
D. the mortgage company is well-within its rights to deny them credit, based on the
Equal Credit Opportunity Act, but must do so within 50 days.
Answer:
Under private law:
A. persons may create legally-binding agreements through their power to contract.
B. persons may enter into contracts, but the contracts will not be upheld in court.
C. persons may create their own rules when there is no prior statute.
D. persons may make their own rules only after studying practice of similar precedents.
Answer:
As a general rule, contracts are assignable:
A. even if the policy’s terms limit assignability.
B. if they are not life insurance policies.
C. even without an irrevocably designated beneficiary’s consent.
D. if they are not property insurance policies.
Answer:
Fran promises to reimburse Tim $700 for a new scooter for his own use. After Tim
delivers the scooter, Fran refuses to pay Tim. Tim may recover under the doctrine of:
A. unjust enrichment.
B. executory contract.
C. unilateral contract.
D. promissory estoppel.
Answer:
Which of the following statements is TRUE about the UCC?
A. One of the purposes of UCC was to promote fair dealing and higher standards of
behavior in the marketplace.
B. The most obvious purpose of UCC was to establish a uniform law to govern
commercial transactions that often takes place within the state.
C. In accordance with the intentions of the drafters of UCC, complete uniformity has
been achieved.
D. The Code is divided into 10 articles that deal with many of the problems that might
ordinarily arise in a commercial transaction.
Answer:
Rebecca contracted Matthew Properties to repair her apartment for $20,000. Matthew
Properties repaired the apartment and handed it over to her. She saw that the garages
and the attic had not been properly worked upon. She filed a suit against them but the
court said that Matthew Properties had been discharged from obligations by a(n):
A. statute of limitations.
B. waiver.
C. occurrence of condition subsequent.
D. altercation.
Answer:
Failure to pay for a license which is required for revenue-raising purposes:
A. affects the legality of the unlicensed person’s agreements and it will be considered
void.
B. results in generally unenforceable contracts.
C. does not affect the legality of the unlicensed person’s agreements.
D. generally imposes a nominal fine for violation.
Answer:
Which section of the 1933 Act imposes liability on any person who has violated the
timing, manner, and content restrictions on offers and sales of new issues?
A. 12(2)
B. 17(a)
C. 12(1)
D. 11
Answer:
The equitable doctrine of _____ allows some parties to recover under oral contracts
which the statute of frauds would have ordinarily rendered unenforceable.
A. estoppel by convention
B. equitable estoppel
C. proprietary estoppel
D. promissory estoppel
Answer:
Which of the following is an example of advance directives?
A. Intestacy
B. Codicil
C. Escheat
D. Living will
Answer:
Under Article 2 of the UCC, in which of the following cases is the seller a
“merchant”?
A. Barbara, an accountant, sells her car to her nephew.
B. Ted, a veterinarian, sells his tractor to his neighbor.
C. Tec-E, a software company, contracts to sell a database program to a local NPO.
D. Tom, a used-car dealer, sells his microwave to Gary.
Answer:
Consequential damages:
A. occur when the special circumstances of the plaintiff cause him to suffer losses that
would not ordinarily be foreseeable as a result of breach.
B. are usually recoverable unless the defendant had reason to foresee them at the time
the contract was created.
C. are measured by the loss in value of the promised performance.
D. are not limited to losses that would occur as a result of breach of contract.
Answer:
If property is mislaid by its owner:
A. the finder of the property has the right to hold the property for the rightful owner.
B. the finder can be held guilty of conversion and must pay the owner the fair value of
the property.
C. the finder acquires no rights to the property.
D. the first person who thereafter takes possession of it with the intent of claiming
ownership becomes its owner.
Answer:
Ratification releases:
A. the principal from liability.
B. the agent from liability.
C. the third party from liability for acts of the principal.
D. the principal and the third party from liability.
Answer:
Which of the following is an affirmative easement?
A. The right to drill for oil and gas on the land of another person.
B. The tenant’s right to use the property during his lifetime.
C. Obtaining oral permission to hunt on another person’s land.
D. The right to have your neighbor refrain from erecting a building on his property.
Answer:
Explain the difference between a partnership and a limited partnership.
Answer:
Answer:
Describe the limitations on the bank’s right or duty to charge the depositor’s account for
the check.
Answer:
Explain the implied warranty of habitability, in a lease setting.
Answer:
Briefly explain the three distinct time frames when secrecy provisions under the
confidentiality clause of licensing agreements may be utilized.
Answer:
Explain two laws governing computer privacy and cybercrime.
Answer:
What are the different electronic funds transfer systems utilized by consumers?
Answer: