Which of the following is not correct regarding the relationship between an independent
contractor and a principal?
a. The contractor is liable under respondeat superior.
b. The contractor generally contracts to perform services but is not controlled by the
principal.
c. The right of control is the essential and often decisive factor in determining whether
someone is an independent contractor or an employee.
d. Under some circumstances, a principal will be vicariously liable for torts committed
by a carefully selected independent contractor.
Able is involved in an automobile accident and is injured. While he is unconscious, the
police call an ambulance which takes him to a hospital. Able is treated at the hospital
and released a day later. The hospital sends him a bill for $6,500, which Able refuses to
pay, claiming it is too high and he never consented to the treatment because he was
unconscious. Able:
a. has entered into a unilateral contract with the hospital and therefore will have to pay
the bill.
b. will have to pay the bill, because this is a quasi-contractual agreement.
c. has entered into an implied in fact contract with the hospital.
d. and the hospital have entered into a bilateral contract, the terms of which require that
he pay the bill.
A freehold estate is:
a. a gratuitous leasehold interest in real property.
b. a right of ownership of real property for an indefinite time (fee estate).
c. a right of ownership of real property for the life of a person (life estate).
d. Both (b) and (c).
A living will is a document that:
a. is videotaped.
b. contains the maker’s wishes regarding extraordinary medical treatment.
c. is capable of being changed from time to time, unlike other wills.
d. cannot be revoked.
Prohibited bribery can result in fines and imprisonment under the antibribery provision
of:
a. the Private Securities Litigation Reform Act.
b. the Foreign Corrupt Practices Act.
c. the Securities and Exchange Commission.
d. None of the above.
An automatic stay ends:
a. upon termination or dismissal of the bankruptcy case.
b. upon the debtor’s receipt of a discharge.
c. only by court order.
d. Both (a) and (b).
The case, State of Qatar v. First American Bank of Virginia, held that:
a. the phrase “for deposit only” is not an effective restrictive indorsement.
b. depositary banks are not required to handle checks consistent with the restrictive
indorsement.
c. the phrase “for deposit only” effectively limits the depositary bank to handle the
instrument in a manner consistent with the transaction.
d. a stolen check which is indorsed in blank cannot be freely negotiated by the bearer.
Which of the following is tangible real property?
a. Corn harvested and stored in a grain bin.
b. The mortgage on an office building.
c. A copyright.
d. The freight elevator in an office building.
In a sale on approval:
a. possession, but not title, is transferred to the buyer for a stated period of time.
b. possession and title are transferred to the buyer for a stated period of time.
c. title, but not possession, is transferred to the buyer for a stated period of time.
d. neither title nor possession is transferred to the buyer for a stated period of time.
TSCA includes provisions that:
a. regulate the manufacture of new chemicals.
b. allow for the registration of pesticides.
c. require that exports be labeled “not registered for use in the United States of
America.”
d. All of the above.
Mark wants to give Susan his car. How can he effectively “deliver” it?
a. By giving Susan the keys.
b. By giving her an indorsed title certificate.
c. By making her take it for a period of time.
d. Both (a) and (b).
Is telling a lie unethical? Analyze whether telling a lie is unethical in terms of each of
the following ethical theories:
a. The deontological approach.
b. Utilitarianism.
c. Intuitionism and the “Television Test.”
d. Ethical relativism.
e. Ethical fundamentalism.
Barb goes to Marlin’s Department store to look for clothes. The store happens to be in
the process of remodeling, and there is a lot of clutter in the aisle. Barb trips over the
clutter and breaks her leg. What standard of care does the store have toward Barb under
the circumstances?
a. None, because she came to the store voluntarily.
b. The store owes her a duty of only ordinary care, because she is a trespasser.
c. Because she is a public invitee, the store must warn her of hazards of which the store
knows but which Barb is not likely to recognize.
d. Because Barb is a business visitor, the store must exercise reasonable care to protect
her against dangerous conditions she is unlikely to discover.
The three distinct and independent branches of the United States government are:
a. the executive branch, the House of Representatives, and the U.S. Senate.
b. the federal judiciary, the House of Representatives, and the U.S. Senate.
c. the federal judiciary, the Congress, and the executive branch.
d. the state government, the federal government, and local government.
The Bankruptcy Code grants to U.S. District Courts:
a. original and exclusive jurisdiction over all bankruptcy cases.
b. original, but not exclusive, jurisdiction over civil proceedings arising under
bankruptcy cases.
c. exclusive jurisdiction over all the debtor’s property.
d. All of the above.
To certify a check, the bank must:
a. tell the one who presents it.
b. send a letter to the drawer.
c. write the acceptance on the check.
d. All of these are correct.
A registration statement generally includes all of the following EXCEPT a:
a. financial statement certified by an accountant.
b. description of the business.
c. description of the management.
d. projection of future growth potential.
An inter vivos gift is a gift:
a. of live animals.
b. contingent upon the donee’s surviving the donor.
c. made by a donor during her lifetime.
d. None of the above.
The FTC remedy of “affirmative disclosure” would require:
a. a new ad that admits the first ad was false.
b. providing certain information in a company’s ad.
c. that the advertiser desist from deception in all products it markets.
d. All of the above.
Maureen agrees to sell her interest in the farm to Joe. Maureen and her husband, Bill,
hold the property as tenants by the entireties. What consequence?
a. There is no sale.
b. The sale severs the tenancy and creates a tenancy in common.
c. The sale transfers one-half interest in the land.
d. The sale results in a partition of the land.
Breach of the implied warranty of habitability allows a tenant to withhold rent.
Contract law generally places more importance on the intent of the parties to form a
contract than on the inclusion of certain terms in the contract.
Section 1 of the Sherman Act does not prohibit concerted action.
Many states impose no limit on the rate of interest that may be charged on loans to
corporations.
If the tortious conduct of Mandy is insufficient by itself to cause Alex’s harm, Mandy’s
conduct cannot be considered in combination with Brent’s tortious conduct to determine
factual cause of Alex’s harm.
The Lanham Act recognizes five types of trade symbols or marks.
Article 2 of the UCC governs sales of goods but it lacks relevance in modern society
because it does not provide rules related to electronic commerce.
The Restatement recognizes moral obligations as consideration.