In a condominium:
a. all residents own shares in the corporation that owns the building.
b. each resident purchases a living unit in the building.
c. the tenant owns a reversionary interest in the property.
d. the tenant creates a future interest in the property known as a possibility of reverter.
A “bench trial” is one in which the decision is made without a jury.
a. True
b. False
Community Hospital in Atlanta entered into a contract to buy delicate lab equipment
from D & D Company in Denver. The contract states shipping terms as FOB, Denver.
While in transit the equipment was damaged beyond repair by the carrier, Fly-by-Nite
Air Lines. The carrier is in weak financial condition and refused to pay for the
equipment. In this case:
a. D & D Company must replace the equipment at no cost to the hospital.
b. Community Hospital has risk of loss.
c. D & D Company and Community Hospital will share the loss equally.
d. risk of loss will depend on which party chose Fly-by-Nite as the carrier.
Busby contracts to build a house for Connell. Busby finishes approximately half of the
house and quits. Connell files suit against Busby. Which remedy is notavailable to her?
a. Compensatory damages
b. Specific performance
c. Special damages
d. Incidental damages
The CFPA excludes from the Bureau of Consumer Financial Protection’s authority the
activities of all but which of
the following?
a. Auto dealers
b. Check cashing businesses
c. Real estate brokers
d. Employee benefit plans
In which of the following situations would the buyer not qualify as “buyer in the
ordinary course of business”?
a. Susie buys her classmate Jill’s car from her.
b. Caroline buys a refrigerator from Sears.
c. James buys eggs from the supermarket.
d. Todd buys a bicycle at his friend Joe’s shop.
Professor Wright photocopies 50 copies of a copyrighted chart to distribute to his
students in class. This is a clear violation of the Copyright Act.
a. True
b. False
Only documentary evidence may be admitted at an administrative hearing.
a. True
b. False
A possibility of reverter is the complementary estate to a:
a. fee simple.
b. qualified fee.
c. life estate.
d. reversion.
The 1990 Clean Air Act Amendments provide that EPA must establish new NAAQS for
major pollutants every five years.
a. True
b. False
The Economic Espionage Act of 1996:
a. defines trade secrets to include information only in tangible form.
b. protects the owner of trade secrets regardless of the measures used to keep the
information secret.
c. provides for punishment of organizations that violate the act by subjecting them to
fines of up to $5 million.
d. narrowly defines theft of trade secrets.
Most state attorneys general:
a. help to coordinate lawsuits against a company that has been engaging in fraudulent
acts involving more than one state
b. are active in consumer protection by enforcing laws against consumer fraud through
judicially imposed injunctions.
c. help consumers by enforcing laws that impose restitution.
d. All of these.
The National Environmental Policy Act:
a. requirements have been, from NEPA’s enactment, clearly substantive only.
b. attempts to prohibit uninformed decisions.
c. requirements have been interpreted by the Supreme Court to be primarily substantive
rather than procedural.
d. requires that the relevant federal agency attempt to mitigate the adverse effects of a
proposed federal action.
A contract contains a provision that states it will be effective for a “year.” The plaintiff
in a lawsuit claims that a “year” is obviously 12 months. The defendant claims that the
contract meant a 10-month school year. Parol evidence: a. cannot be used to explain the
term, because the plain meaning of a “year” is 12 months.
b. cannot be used to explain the term, because it is an integrated document.
c. can be used to clarify the parties’ intent because in this contract the term “year” is
ambiguous.
d. cannot be used, because the contract contains an express term that could have been
changed by the parties prior to the contract’s execution.
The Truth-in-Lending Act establishes maximum amounts of interest that can be charged
for credit cards.
a. True
b. False
If the board delegates to a committee its duty to select a new company president:
a. the members of that committee may be responsible individuals other than board
members.
b. the committee must be approved by the shareholders.
c. the non-committee directors are relieved of liability for acts of the committee.
d. the committee must consist of board members.
Which of the following statement(s) is/are true concerning the Montreal Protocol on
Substances that Deplete the
Ozone Layer?
a. The United States, Mexico and Canada signed it.
b. It was not signed by the United States but was signed by 23 other countries.
c. It is a treaty that requires all signatories to reduce their production and consumption
of all chemicals.
d. It is a treaty that requires all signatories to reduce their production and consumption
of only CFC’s.
A totten trust may also be referred to as a savings account trust.
a. True
b. False
The CISG follows the perfect tender rule, as does the Code.
a. True
b. False
Unless otherwise provided in the LLC’s operating agreement, a member may assign his
financial interest in the LLC
without dissolving the LLC.
a. True
b. False
A sale exists when the buyer takes:
a. title to the goods.
b. the risk of loss on the goods.
c. an insurable interest in the goods.
d. a special property interest in the goods.
Under the UCC, identifying goods to which a contract refers gives the buyer a special
property interest which permits the holder to:
a. insure the goods.
b. immediately transfer title to the goods.
c. take immediate possession of the goods from the seller.
d. sue the seller for improper treatment of the goods.
Harms or injuries that are tortious may be inflicted:
a. intentionally.
b. negligently.
c. without fault.
d. In all of these ways.
All but which one of the following is a purpose of bankruptcy legislation?
a. To preserve existing business relations
b. To punish recalcitrant debtors
c. To fairly divide the assets among creditors
d. To allow rehabilitation of debtors
A foreign agent is used by multinational enterprises to take title to merchandise and
bear the risks connected with international sales.
a. True
b. False
“Perfection” is required in order for the secured party to enforce rights against the
debtor.
a. True
b. False
NEPA does not apply to the urban environment.
a. True
b. False
A warehouse receipt:
a. is not a document of title.
b. is a receipt issued by a person engaged in the business of storing goods for hire.
c. grants a lien enabling a warehouser to sell goods only at a public sale.
d. All of these.
Cumulative voting is permitted so the majority of shareholders can keep control of the
board of directors.
a. True
b. False
Which chapter of the Bankruptcy Code allows for the adjustment of debts of an
individual with regular income?
a. Chapter 7
b. Chapter 11
c. Chapter 12
d. Chapter 13
An offer under Article 2 of the UCC that is irrevocable even though no consideration is
given to keep it open is known as a(n):
a. option.
b. firm offer.
c. requirements contract.
d. output contract.
Business law is primarily public law.
a. True
b. False
The greatest ownership interest a person may have in real property is:
a. fee simple absolute.
b. tenancy by the entirety.
c. life estate.
d. vested remainder.
Chapter 12 of the Bankruptcy Code applies to individuals or couples engaged in
farming if 50 percent of their gross income is from farming and aggregate debts do not
exceed $1 million.
a. True
b. False