The Code greatly alters the common law doctrine of material breach by adopting what
is known as the:
a. perfect tender rule.
b. anticipatory repudiation rule.
c. prevention of performance rule.
d. discharge by operation of law rule.
a. What is the purpose of the Freedom of Information Act?
b. To what categories of records does the FOIA allow denial of access?
A merger involving noncompeting firms producing unrelated goods and services is
termed a:
a. tying arrangement.
b. vertical merger.
c. conglomerate merger.
d. horizontal merger.
SEC regulations concerning fraud in securities transactions apply to:
a. all securities transactions involving interstate commerce.
b. only securities registered under the 1934 Act.
c. only securities registered under the 1933 Act.
d. securities registered under both the 1933 and 1934 Acts.
Edward is hired to manage Fred’s business. Which of the following is NOT true
regarding Edward’s authority?
a. Edward has authority to sell a used cash register when he buys a new computerized
checkout system for the store.
b. Edward has authority to send bills to customers and to accept payments on behalf of
Fred.
c. Edward can hire employees, but he cannot fire them without Fred’s consent.
d. Edward can enter into contracts with wholesalers for merchandise in the store.
Which of the following statement(s) is true concerning the Montreal Protocol on
Substances that Deplete the Ozone Layer?
a. The United States and 23 other countries 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. Both (a) and (c).
The exercise of the power to avoid a contract is known as:
a. ratification.
b. disaffirmance.
c. ab initio.
d. restitution.
A written, integrated 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 the contract is an integrated document.
c. can be used by the parties to clarify their intent because the term ‘year’ in the contract
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.
Bob, the tax accountant, promises to do Marge’s individual federal, state, local, and gift
taxes for the year. He completes all but the gift taxes. Under the substantial
performance doctrine, Marge will:
a. not have to pay Bob.
b. not have to accept the work.
c. have to pay Bob for all but the gift taxes.
d. have to pay Bob the contract price.
Goods are to be sent from Buffalo, NY to Raleigh, NC by UPS using the delivery terms
F.O.B. Buffalo, NY. Where does tender occur?
a. Where the goods are identified.
b. Where the goods are shipped.
c. Where the goods are delivered.
d. Where the goods are taken by the buyer.
What is the supreme law of the land in the United States?
a. Criminal statutes.
b. Treaties.
c. Case law as developed through the U.S. Supreme Court.
d. The U.S. Constitution.
Under the Check Clearing for the 21st Century Act:
a. a new negotiable instrument, called an IRD, was created.
b. banks are required to accept checks in electronic form.
c. Both of the above.
d. None of the above.
Under which of the following provisions of the U.S. Constitution is a corporation not a
“person”?
a. The Fifth Amendment Due Process Clause.
b. The Fourteenth Amendment Due Process Clause.
c. The Fourteenth Amendment Equal Protection Clause.
d. The Fifth Amendment right against self-incrimination.
Who among the following is most likely NOT considered a merchant according to
Article 2 of the UCC?
a. Jim who owns a wholesale auto parts business.
b. Tom who, as a hobby, builds and sells birdhouses on the weekends.
c. Kay who sells her 3-year-old fishing boat to her neighbor.
d. Jan, who is not knowledgeable about selling sailboats, but who employs an
experienced expert in the trade.
A crime that is punishable by a fine or imprisonment in a local jail is a:
a. felony.
b. white-collar crime.
c. misdemeanor.
d. mala prohibita crime only.
SEC Rule 10b5-2 adopts what theory of liability?
a. Misappropriation.
b. Strict.
c. Negligence.
d. Criminal.
With regard to Article 6 of the Uniform Commercial Code, which of the following is
accurate?
a. The National Conference of Commissioners on Uniform State Laws and the
American Law Institute jointly issued a recommendation stating “that changes in the
business and legal contexts in which sales are conducted have made regulation of bulk
sales necessary.”
b. Over two-thirds of the states have repealed Article 6 of the UCC.
c. Article 60 is a revision of Article 6.
d. All of the above.
What principle did the court apply in the case of Madison Square Garden Corp., Ill. v.
Carnera?
a. When damages are not adequate, an injunction may be used to enforce an agreement
to perform exclusive services that are unusual and extraordinary.
b. When services contracted for are unusual or extraordinary, the injured party cannot
obtain injunctive relief.
c. An injured party’s damages may not be reduced by mitigation for his failure to accept
or seek other employment of a different or inferior kind.
d. Damages are recoverable only if they were foreseeable at the time of entering into
the contract.
Anna by mistake delivers to Bob a plain, unaddressed envelope containing $50 intended
for Cora. Bob:
a. can keep the money.
b. is under a contractual obligation to return the money.
c. has a quasi-contractual obligation to return the money.
d. has an implied in fact obligation to return the money.
In most sales, the buyer has the right to inspect the goods before he pays.
Explain how the Revised Act facilitates electronic filing of a financing statement.
Distinguish between a rejection of an offer and a revocation of an offer.
A lessor retains title to the goods and has the right to recover possession of them upon
default by the lessee.
To create a joint tenancy, the tenants must acquire title by the same instrument.
Judicial review is the process by which courts review governmental action to determine
whether such actions conform to the U.S. Constitution.
Mother conveyed her lakefront property to her daughter, Ellen, for life and then to
Ellen’s children, but if Ellen had no children, to Mark. Mark has a contingent remainder.
Creditors of the beneficiary of a spendthrift trust can attach the income of the trust
before or after the beneficiary receives it, but they cannot reach the trust fund itself.