An obligation imposed by law where there has been no agreement or expression of
assent by word or act on the part of either party involved is a(n):
a. implied in fact contract.
b. express contract.
c. void contract.
d. quasi contract.
Which of the following is NOT true regarding specific performance?
a. It will not be granted if money damages would be adequate to compensate the injured
party.
b. It is granted in contracts involving unique items of personal property.
c. It will be granted frequently in contracts involving the sale of goods.
d. The courts will not order directly the specific performance of contracts for personal
services.
Business torts consist of:
a. interference with contractual relations.
b. disparagement.
c. fraudulent misrepresentation.
d. All of these are correct.
A default judgment is:
a. a legal pleading that contains denials, admissions, affirmative defenses, and
counterclaims.
b. a pleading that is a statement of the initial claim against the defendant.
c. an assertion that even if the plaintiff’s allegations are true, the plaintiff would not be
entitled to a remedy.
d. a judgment against a defendant who fails to respond to a complaint.
Which of the following statements is true regarding administrative law judges?
a. ALJs are appointed by the president with the approval of the Senate.
b. ALJs may be removed only for good cause.
c. There are more than twice as many federal judges as there are administrative law
judges.
d. Administrative law judges preside over jury cases within the area of expertise of the
agency.
Steve defaults on a car loan secured by his car and guaranteed by both Sam and Dave.
Subrogation would allow Sam, who paid Steve’s full obligation to:
a. repossess the car.
b. collect from Dave.
c. collect from Steve.
d. All of the above.
Under the MBCA, a quorum of shareholders at an annual meeting may be not less than
what percentage of the shares entitled to vote?
a. 10.
b. 33 1/3.
c. 66.
d. 50.
The right of a shareholder to examine the books and records of the corporation may be
denied if the shareholder:
a. seeks information to determine the financial condition of the corporation.
b. desires to know the value of shares.
c. seeks information to embarrass or cause loss to the corporation.
d. desires the names and addresses of other shareholders.
Paul, a police officer, is working as an undercover drug agent. He enrolls in classes at
the local university where he meets several students in business administration and
invites them to come to his house for a party. No mention is made of any drugs, but he
does say he will have a keg of beer. Shortly after his guests arrive, he gets out some
marijuana and offers it to the group. All of them refuse except for Sam, who has never
tried it before. When Paul encourages Sam to try it and Sam lights up the joint, Paul
arrests Sam for possession of a controlled substance. Sam:
a. is clearly guilty as charged.
b. can raise the defense of entrapment and argue that Paul has enticed him to commit a
crime he would not have done otherwise.
c. can use the defense of duress.
d. can use the Fourth Amendment to exclude the marijuana as evidence that has been
illegally seized.
Brett contracts to purchase a particular hybrid from Johnson’s car lot. At what point
does Brett obtain a ‘special property interest” in the car?
a. When the contract is made.
b. When the car is tendered to Brett.
c. When Brett pays for the car.
d. When Brett accepts the car.
Which of the following would be a bearer instrument?
a. A check payable to “cash.”
b. A check that says “pay to the order of John Jones.”
c. A check that says “pay to the order of bearer.”
d. Both (a) and (c).
Tim mails an offer to Brian on June 15. Brian receives the offer on June 16. Tim mails a
revocation of the offer on June 17. Brian mails a letter of acceptance on June 18. Brian
receives the revocation on June 19. Tim receives the letter of acceptance on June 20.
Was a contract formed?
a. Yes, on June 16.
b. Yes, on June 18.
c. Yes, on June 20.
d. No, the offer was revoked before acceptance.
The First Amendment’s guarantee of free speech applies to:
a. corporate political speech.
b. defamation.
c. commercial speech.
d. All of these are correct.
An aggrieved seller may:
a. withhold delivery.
b. resell or recover damages for nonacceptance or recover the price.
c. recover incidental damages.
d. All of the above.
Failure to comply with Section 1 or 2 of the Sherman Act:
a. is a crime and can result in imprisonment.
b. may subject an individual to a fine of up to $1 million per violation.
c. may subject a corporation to a fine of $100 million per violation.
d. All of the above.
Elvis makes an offer to Fred, but before Fred can accept, the state supreme court
decides a case that makes Elvis’s offer illegal. What is the effect of the court’s decision
on the offer?
a. The court’s decision automatically terminates the offer.
b. The court’s decision has no effect on the offer.
c. The court’s decision acts as a condition on the offer.
d. The court’s decision acts as a rejection of the offer by the offeree.
The remedy for misrepresentation is specific performance of the contract.
Under the Code, to be recoverable, damages have to be ‘calculable with mathematical
precision.’
Harold says in the presence of three other people that he is giving his automobile to his
nephew, and then hands the keys to the car to the nephew. Delivery of the auto has
taken place.
The Minnesota Housing Authority plans to begin eminent domain proceedings to
acquire 100 homes to rent to low-income persons. The Housing Authority wants to pay
as little as possible for the homes so that it can acquire more homes in the future, but
the homeowners insist they are entitled to the fair market value of the property. In a
court hearing on the matter, the homeowners are likely to prevail.
Oswald applied for a loan from Pointe Lenders. Pointe’s reasonable cost of checking
Oswald’s credit will be considered as part of the financing charge when determining
whether Pointe’s rate of interest exceeds that allowable under the usury statute.
An adhesion contract is offered on a “take-it-or-leave-it” basis.
Fungible goods are goods for which one unit is the equivalent of any other unit.
If a person’s 150-pound sheep dog has a propensity to jump enthusiastically on visitors,
the animal’s keeper would be liable for any damages done by the dog’s playfulness.
In order to induce a car dealer to sell her son a car on credit, Mary promises that she
will pay for the son’s car if the son defaults on his monthly payments to the dealership.
Mary’s promise must be in writing.