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Trade names or assumed names cannot be used for signing negotiable instruments.
Article 2 of the Uniform Commercial Code (UCC) prescribes a set of uniform rules for
the creation and enforcement of contracts for the sale of goods.
Publicly held corporations are corporations run by the government.
In the United States, the first party to file a patent on an invention receives the patent
even though some other party was the first to invent the invention.
Promissory estoppel is an equity doctrine that permits parties to enforce a contract that
includes consideration.
The motion for summary judgment alleges that if all the facts presented in the pleadings
are taken as true, the party making the motion would win the lawsuit when the proper
law is applied to these asserted facts.
The death of one of the parties of a tenancy at will does not terminate the contract.
Diane bought an action figure for David, her 3-year-old son, from Terrence's Toy Shop.
The packaging did not mention that the toy contained small detachable parts. David
accidentally swallowed and choked on one of the detachable parts and had to be taken
to the hospital. On which of the following product liability charges can Diane sue
Terrence's Toy Shop for damages?
A) negligence
B) misrepresentation
C) fraud
D) nuisance
Which of the following is a right to which every general partner is entitled under the
Uniform Partnership Act?
A) right to remuneration
B) right to free and open speech
C) right to return of capital
D) right to legal action
Gary and Mary are siblings involved in a legal tangle over who gets possession of their
ancestral home. Gary threatens to kill Mary's husband if she does not sign papers
declaring Gary's sole ownership of their home. This is an instance of ________.
A) scienter
B) battery
C) undue influence
D) duress
Which of the following regulatory agencies was set up under the provisions of the
Dodd-Frank Wall Street Reform and Consumer Protection Act?
A) Federal Deposit Insurance Corporation
B) Bureau of Consumer Financial Protection
C) National Credit Union Administration
D) U.S. Securities and Exchange Commission
Who receives the trust res on the termination of a trust?
A) the heir
B) the trustor
C) the remainder beneficiary
D) the income beneficiary
The ________ is used to determine merchantability of food products based on what the
average buyer is supposed to find in particular food products.
A) foreign substance food test
B) contagion test
C) contamination test
D) consumer expectation test
Conscious parallelism is seen when ________.
A) parties at different levels enter into an agreement to adhere to a price schedule that
stabilizes prices
B) one party makes an independent choice not to deal with another
C) two or more firms act the same but no concerted action is shown
D) a party's anticompetitive effects outweigh their procompetitive effects
What is the statutory period of redemption?
A) The time limit that a trustee can claim legal title to the real property.
B) The time allotted to a mortgagor to pay the full debt on real property even after
foreclosure.
C) The time by which the mortgagor has to pay at least part of his debts.
D) The time allotted by which a mortgagee must start legal proceedings against a
defaulter.
What is the similarity between a buyer's remedy of capture and replevy?
A) both are invoked when the buyer has to cover
B) both are invoked for accepting nonconforming goods
C) both help the buyer to receive damages
D) both help the buyer recover goods from the seller
The U.S. Coast Guard administers the Oil Pollution Act which requires the oil industry
to ________.
A) obtain a permit for dumping wastes and other foreign materials into ocean waters
B) implement measures to avoid dumping of wastes into wells used for drinking water
C) adopt procedures and contingency plans to readily respond to and clean up oil spills
D) establish marine sanctuaries in ocean waters as far seaward as the edge of the
continental shelf
Lucy wants a divorce from her husband but he wants to stay in the marriage. She
threatens to bring a false criminal lawsuit claiming physical abuse from him if he does
not sign the divorce papers. This is an instance of ________.
A) fraud
B) duress
C) undue influence
D) scienter
Which of the following is true of misrepresentation of a material fact?
A) It can occur only by the words of the wrongdoer.
B) A misrepresentation is actionable as fraud only if it is the sole factor in inducing the
innocent party to enter into the contract.
C) It is actionable as fraud if the misrepresentation is of a past or existing material fact.
D) Predictions about the future are considered basis for fraud.
________ is law that an administrative agency enforces, such as federal statutes enacted
by Congress, or state statutes enacted by state legislatures.
A) Formal ruling
B) Substantive administrative law
C) Procedural administrative law
D) Informal ruling
Cameron, a purported agent, signs a contract and promissory note to purchase a
building for Burnstar Constructions, a purported principal. Though Cameron is an
unauthorized representative, Burnstar Constructions, the purported principal, likes the
deal and accepts it. Which of the following is true of the deal ratified by Burnstar
Constructions?
A) The deal is invalid due to the fraud in the inducement rule.
B) The deal is invalid due to the fraud in the inception rule.
C) Burnstar Constructions is liable on the note.
D) Cameron is liable on the note.
Which of the following rights is generally assignable in the United States?
A) personal service contract
B) a future right
C) legal action
D) recovery of debt
Edda receives a check for $100 from Sheldon. Sheldon has a balance of $3,600 in his
checking account with Rosemund Bank. In this case, Edda is the ________.
A) drawer
B) drawee
C) payer
D) payee
The Federal Communications Commission issues licenses and regulates the operation
of television and radio stations. This is an example of a(n) ________.
A) general government regulation
B) specific government regulation
C) cabinet-level federal department
D) independent federal administrative agency
________ damages are awarded when the nonbreaching party sues the breaching party
even though no financial loss has resulted from the breach.
A) Consequential
B) Compensatory
C) Nominal
D) Liquidated
A tenancy created when a landlord and a tenant agree on a specific duration for the
lease is known as a ________.
A) tenancy for years
B) periodic tenancy
C) tenancy by the entirety
D) tenancy at sufferance
An ________ refers to an agency that arises when a franchisor creates the image that a
franchisee is its agent when in fact an actual agency does not exist.
A) apparent agency
B) implicit agency
C) agency by ratification
D) implied agency
